Ballungsprozesse im Standortwettbewerb der deutschen Bundesländer

Berthold Norbert and Neumann Michael

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2004, vol. 55, issue 1, 169-190

Abstract: Agglomerative forces have an important influence on the competition of governments in Germany. The advanced German Länder behave like monopolists rather than competitors. Their interaction with the poorer German Länder leads not necessarily to more efficiency. Because of the economies of scale between firms, industry tends to stay together, either in one of the German Länder or in the other. This gives Germany on the one hand a so called „core“ and a on the other hand a so called „periphery“. Industry is not indifferent to location, even if political ineffinency is not taken into account. The core must be just sufficiently efficient so that the periphery does not want to compete. And the periphery can choose its inefficiencies unconstrained given this politics of the core. There are further well known problems in the competition of goverments in Germany, too. In the sum of this distortions the national competition of governments in Germany leads the Länder to have different possibilities to attract industries and to show different unemployment rates and welfare.

Date: 2004
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DOI: 10.1515/ordo-2004-0111

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