Differences in Regional Economic Prosperity: Do State Policies Matter? An Empirical Investigation of Data from the German States

International Public Administration Review, Vol. XI, No. 1/1013

21 Pages Posted: 5 Mar 2015

See all articles by Thomas Döring

Thomas Döring

University of Applied Sciences Darmstadt

Lorenz Blume

Phillips University Marburg

Date Written: January 3, 2013

Abstract

Different regional economic theories come to different conclusions with regard to the impact of (state) policies on the economic prosperity of regions. This article provides empirical evidence that determinants like geography, urbanization, industrial mix and social capital explain 68 percent of the variation in GDP per worker among West German regions. One element that all these factors have in common is that they cannot, at least in the short run, be influenced by state policies. Determinants like infrastructure and human capital, both of which can be influenced by state policies, only account for another 11 percent of the variation in GDP.

Keywords: Regional Economic Development, State Policies, Fiscal Equalization Scheme

JEL Classification: H07

Suggested Citation

Döring, Thomas and Blume, Lorenz, Differences in Regional Economic Prosperity: Do State Policies Matter? An Empirical Investigation of Data from the German States (January 3, 2013). International Public Administration Review, Vol. XI, No. 1/1013, Available at SSRN: https://ssrn.com/abstract=2572846

Thomas Döring (Contact Author)

University of Applied Sciences Darmstadt ( email )

Haardtring 100
Darmstadt, D-64295
Germany
+496151168743 (Phone)
+496151168925 (Fax)

Lorenz Blume

Phillips University Marburg ( email )

Am Plan 2
Marburg, D-35037
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
20
Abstract Views
326
PlumX Metrics