Concentration and Specialisation Trends in Germany Since Reunification

39 Pages Posted: 16 Aug 2004

See all articles by Jens Suedekum

Jens Suedekum

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)

Date Written: July 2004

Abstract

In this paper we describe the development of regional specialisation and geographical concentration in Germany between 1993 and 2001. Somewhat contrary to theoretical expectations derived from the recent literature in location theory, we neither find compelling evidence for a specialisation process of German regions, nor for a concentration process of industries. By and large and with some exceptions, this conclusion holds both for West Germany and Germany as a whole, as well as for all levels of territorial aggregation (NUTS1-NUTS3). Urban areas are stronger specialised than rural districts, but also subject to faster de-specialisation. Those regions, which have increased regional specialisation against the trend, have performed significantly better in terms of employment growth.

Keywords: Regional Specialisation, Geographical Concentration, Economic Integration, Location Theory, Employment Growth, Germany

JEL Classification: F14, F15, R12

Suggested Citation

Südekum, Jens, Concentration and Specialisation Trends in Germany Since Reunification (July 2004). Available at SSRN: https://ssrn.com/abstract=576902 or http://dx.doi.org/10.2139/ssrn.576902

Jens Südekum (Contact Author)

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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