The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities

Eva Wolfschuetz ()
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Eva Wolfschuetz: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Does inter-municipal cooperation (IMC) enhance municipal economic performance? This study employs marginal structural models to address selection into treatment and time-dependent confounding to estimate the effectiveness of IMC in the field of local business development. I use data on municipalities in four West-German states, Lower Saxony, Hesse, Rhineland Palatinate, and Bavaria during the years 2008-2015. I find that, over time, IMC has a positive effect on local economic performance and local business development resources are spent more productively in cooperating municipalities.

Keywords: Inter-municipal cooperation; economic development; marginal structural models; Germany (search for similar items in EconPapers)
JEL-codes: D78 H77 O10 O22 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2020
New Economics Papers: this item is included in nep-eur, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202005

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