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Industrial Clusters as Source of Prospering Regions? Economic Structure and Regional Performance 2002-2007


  • Alexander Kubis


  • Mirko Titze


  • Matthias Brachert



This paper explores the impact of industrial clusters on regional growth at level of German labour market regions within a regional convergence model. It focuses on vertically connected industrial sectors, which can emerge parallel to horizontal interconnections. Based on works of Schnabl (2000) it is possible to identify three different effects of industrial clusters on regional economic performance. Beside the effects of regionally concentrated economic sectors (horizontal clusters) and value-added production chains (vertical clusters) on the region itself, the paper segregates regional spillover effects of industrial clusters. Furthermore, the study allows the isolated examination of the impact of industrial clusters while taking regional convergence into consideration. In addition to the all-German process of convergence and the specific East German process, positive growth effects of industrial clusters are detected. Therefore industrial clusters present an opportunity to explain deficits within the process of East-West convergence. The relative absence of industrial clusters in East Germany influences the growth potential in a negative way.

Suggested Citation

  • Alexander Kubis & Mirko Titze & Matthias Brachert, 2011. "Industrial Clusters as Source of Prospering Regions? Economic Structure and Regional Performance 2002-2007," ERSA conference papers ersa10p459, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p459

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    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
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    3. Forslund, Ulla M & Johansson, Borje, 1995. "Assessing Road Investments: Accessibility Changes, Cost Benefit and Production Effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 29(2), pages 155-174, May.
    4. Matilde Mas & Joaquin Maudos & Francisco Perez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 641-649.
    5. Elena López & Javier Gutiérrez & Gabriel Gómez, 2008. "Measuring Regional Cohesion Effects of Large-scale Transport Infrastructure Investments: An Accessibility Approach," European Planning Studies, Taylor & Francis Journals, vol. 16(2), pages 277-301, February.
    6. Jesús Mur & Fernando López & Ana Angulo, 2009. "Testing the hypothesis of stability in spatial econometric models," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 409-444, June.
    7. Alfredo M. Pereira & Jorge M. Andraz, 2005. "Public Investment in Transportation Infrastructure and Economic Performance in Portugal," Review of Development Economics, Wiley Blackwell, vol. 9(2), pages 177-196, May.
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