Local Economic Structure and Industry Development in Germany, 1993-2001

Blien, Uwe; Suedekum, Jens

doi:10.2139/ssrn.602403

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Local Economic Structure and Industry Development in Germany, 1993-2001

17 Pages Posted: 11 Oct 2004

See all articles by Uwe Blien

Uwe Blien

Institute for Employment Research (IAB); IZA Institute of Labor Economics

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: October 2004

Abstract

This paper analyses the impact of dynamic MAR- and Jacobs-externalities on local employment growth in Germany between 1993 and 2001. In order to facilitate a comparison between the neighbouring countries we firstly replicate the study of Combes (2000) on local employment growth in France and find very similar results for Germany. Afterwards we formulate an alternative empirical model that is based on a weighted regression approach. With this model we find that Jacobs-externalities matter in manufacturing, whereas MAR-externalities are present in advanced service sectors.

Keywords: dynamic externalities, local employment growth, urbanisation and localisation effects

JEL Classification: R11, O40

Suggested Citation: Suggested Citation

Blien, Uwe and Südekum, Jens, Local Economic Structure and Industry Development in Germany, 1993-2001 (October 2004). Available at SSRN: https://ssrn.com/abstract=602403 or http://dx.doi.org/10.2139/ssrn.602403