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Local Economic Structure and Industry Development in Germany, 1993-2001

Author

Listed:
  • Blien, Uwe

    (Institute for Employment Research (IAB), Nuremberg)

  • Suedekum, Jens

    (Heinrich Heine University Düsseldorf)

Abstract

This paper analyses the impact of dynamic MAR- and Jacobs-externalities on local employment growth in Germany between 1993 and 2001. In order to facilitate a comparison between the neighbouring countries we firstly replicate the study of Combes (2000) on local employment growth in France and find very similar results for Germany. Afterwards we formulate an alternative empirical model that is based on a weighted regression approach. With this model we find that Jacobs-externalities matter in manufacturing, whereas MARexternalities are present in advanced service sectors.

Suggested Citation

  • Blien, Uwe & Suedekum, Jens, 2004. "Local Economic Structure and Industry Development in Germany, 1993-2001," IZA Discussion Papers 1333, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp1333
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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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