Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach

Hyun-Ju Koh and Nadine Riedel

No 80, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: This paper assesses the agglomeration pattern of four-digit industries in Germany using a rich data set on the population of German firms. To identify geographical agglomeration, we follow the distance based approach of Duranton and Overman (2005) and find that the location pattern of 78% of our industries departs from ran- domness in the sense that firms exhibit significant geographical localization. In line with previous studies on manufacturing firms in the UK and France, our analysis suggests that especially traditional manufacturing industries exhibit strong localiza- tion patterns. Moreover, we find that geographical localization is not restricted to the manufacturing sector but that it plays an equally, or even more important role in service industries.

Keywords: Geographic concentration; agglomeration (search for similar items in EconPapers)
JEL-codes: R12 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2009-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://bgpe.cms.rrze.uni-erlangen.de/files/2023/0 ... e-Based-Approach.pdf First version, 2009 (application/pdf)

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Working Paper: Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:080_koh

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