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Patterns of regional firm mobility in Germany

Author

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  • Schröpf, Benedikt
  • Kovalenko, Tim

Abstract

Although domestic establishment relocations are part of both the factor reallocation across regions and establishment dynamics within an economy, evidence on firm mobility in Germany is rather scarce. In this study, we therefore examine establishment- and regional-level patterns of firm mobility in Germany. Using rich administrative data, we document that most relocation flows go from major cities to the surrounding urban districts, suggesting sub-urbanization patterns. In terms of establishment-level characteristics, we document that middle-sized and knowledge-intensive establishments exhibit high relocation propensities. Further, establishments moving to major cities or urban districts are rather high-wage establishments while establishments moving to rural districts are rather low-wage establishments. Our regional analyses reveal that relocating establishments prefer nearby regions with (compared to their old locations) low tax burdens and low population densities.

Suggested Citation

  • Schröpf, Benedikt & Kovalenko, Tim, 2024. "Patterns of regional firm mobility in Germany," FAU Discussion Papers in Economics 02/2024, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    • Handle: RePEc:zbw:iwqwdp:296487
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    More about this item

    Keywords

    Firm mobility; Establishment Relocation; Firm Location; Germany;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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