Globalization and Local Profiles of Economic Growth and Industrial Change

Wolfgang Dauth and Jens Suedekum

No 8161, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend– also known as Petty's law – is not uniform across space, however. Some regions exhibit it at an even accelerated pace, while other regions have reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with "protrend", "anti-trend" or "featureless" growth. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the regional profiles of growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.

Keywords: trade exposure; local industry compositions; structural change; local employment growth (search for similar items in EconPapers)
JEL-codes: F16 O14 R11 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014-04
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Economic Geography, 2016, 16 (5), 1007-1034

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Related works:
Journal Article: Globalization and local profiles of economic growth and industrial change (2016)
Working Paper: Globalization and local profiles of economic growth and industrial change (2014)
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