Local economic policies as determinants of the local business climate: Empirical results from a cross-section analysis among East German municipalities

Lorenz Blume

Regional Studies, 2006, vol. 40, issue 4, pages 321-333

Abstract: Blume L. (2006) Local economic policies as determinants of the local business climate: empirical results from a cross-section analysis among East German municipalities, Regional Studies 40, 321--333. For the period after 1995, there is empirical evidence that differences in East German local economic policies explain a significant part of the variation in the local business climate. A cross-section analysis among 92 municipalities shows that successful economic policies consisted of a balanced mix of traditional instruments (consulting, real estate management, investment in infrastructure) and modern, competition-oriented activities (city marketing, new public management, regional cooperation and public--private partnerships). At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these. Local economic policies Local business climate East German municipalities Blume L. (2006) Local economic policies as determinants of the local business climate: empirical results from a cross-section analysis among East German municipalities, Regional Studies 40, 321--333. For the period after 1995, there is empirical evidence that differences in East German local economic policies explain a significant part of the variation in the local business climate. A cross-section analysis among 92 municipalities shows that successful economic policies consisted of a balanced mix of traditional instruments (consulting, real estate management, investment in infrastructure) and modern, competition-oriented activities (city marketing, new public management, regional cooperation and public--private partnerships). At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these. Politique économique locale Climat commercial local Municipalités en Allemagne de l'Est Blume L. (2006) Local economic policies as determinants of the local business climate: empirical results from a cross-section analysis among East German municipalities, Regional Studies 40, 321--333. For the period after 1995, there is empirical evidence that differences in East German local economic policies explain a significant part of the variation in the local business climate. A cross-section analysis among 92 municipalities shows that successful economic policies consisted of a balanced mix of traditional instruments (consulting, real estate management, investment in infrastructure) and modern, competition-oriented activities (city marketing, new public management, regional cooperation and public--private partnerships). At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these. Örtliche Wirtschaftspolitik Örtliches Geschäftsklima Ostdeutsche Städte Blume L. (2006) Local economic policies as determinants of the local business climate: empirical results from a cross-section analysis among East German municipalities, Regional Studies 40, 321--333. For the period after 1995, there is empirical evidence that differences in East German local economic policies explain a significant part of the variation in the local business climate. A cross-section analysis among 92 municipalities shows that successful economic policies consisted of a balanced mix of traditional instruments (consulting, real estate management, investment in infrastructure) and modern, competition-oriented activities (city marketing, new public management, regional cooperation and public--private partnerships). At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these. Políticas económicas locales Clima comercial de ámbito local Municipios de Alemania del este

Date: 2006
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