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Profiles of local growth and industrial change: Facts and an Explanation

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  • Dauth, Wolfgang
  • Südekum, Jens

Abstract

In this paper we take a detailed look at the sectoral anatomy of regional growth in German regions over the period 1978-2008. In the aggregate, the German economy is characterized by a secular decline of the manufacturing sector and a rise of the modern service economy. This trend of structural change (Petty s law) by no means occurs uniformly across space, however. Some regions exhibit this trend even at an accelerated pace, while other regions develop their local economic structures against the trend and expand their manufacturing bases. We first develop a novel empirical approach that allows us to categorize all German regions into one out of three groups with pro-trend , anti-trend or featureless regional growth. Afterwards we show that the differential exposure to international trade is an important cause of the divergent patterns of local industrial change.

Suggested Citation

  • Dauth, Wolfgang & Südekum, Jens, 2014. "Profiles of local growth and industrial change: Facts and an Explanation," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100503, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100503
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    Cited by:

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    2. Dauth, Wolfgang, 2013. "The Magnitude and Causes of Job Polarization: A Local Labor Market Approach," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79858, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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