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Spatial fragmentation of industries by functions

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  • Franz-Josef Bade

    (University of Dortmund)

  • Eckhardt Bode

    (Kiel Institute for the World Economy)

  • Eleonora Cutrini

    (University of Macerata)

Abstract

We explore to what extent key functions in manufacturing are spatially clustered with, or dispersed from,each other within industries, and how these clustering or dispersion patterns have changed during recent decades. Estimating the levels and changes (1992–2007) of localizations and colocalizations of selected functions (production, headquarter services, R&D) within 27 West German industries by means of K densities, we identify two broad groups of industries. In “fragmenting” industries,which account for one half of manufacturing employment, functions were more clustered with each other than the industry as a whole after the fall of the Iron Curtain but have, in accordance with regional theories of spatial fragmentation, been unbundled spatially from each other subsequently. In “integrating” industries, by contrast, which account for one third of manufacturing employment, functions were initially dispersed from each other but have subsequently been rebundled spatially with each other. We hypothesize that this spatial rebundling is a consequence of offshoring, i.e., international fragmentation.

Suggested Citation

  • Franz-Josef Bade & Eckhardt Bode & Eleonora Cutrini, 2012. "Spatial fragmentation of industries by functions," Working Papers 39-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Feb 2012.
  • Handle: RePEc:mcr:wpaper:wpaper00039
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    Cited by:

    1. Diego Puga, 2017. "The changing distribution of firms and workers across cities," Development Working Papers 418, Centro Studi Luca d'Agliano, University of Milano, revised 21 Feb 2017.
    2. Behrens, Kristian & Guillain, Rachel, 2017. "The determinants of coagglomeration: Evidence from functional employment patterns," CEPR Discussion Papers 11884, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    fragmentation; localization; colocalization; functions; offshoring; Germany; K density; manufacturing;

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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