Spatial fragmentation of industries by functions

Franz-Josef Bade, Eckhardt Bode and Eleonora Cutrini (eleonora.cutrini@unimc.it)
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Franz-Josef Bade: University of Dortmund

No 39-2012, Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE)

Abstract: We explore to what extent key functions in manufacturing are spatially clustered with, or dispersed from,each other within industries, and how these clustering or dispersion patterns have changed during recent decades. Estimating the levels and changes (1992–2007) of localizations and colocalizations of selected functions (production, headquarter services, R&D) within 27 West German industries by means of K densities, we identify two broad groups of industries. In “fragmenting” industries,which account for one half of manufacturing employment, functions were more clustered with each other than the industry as a whole after the fall of the Iron Curtain but have, in accordance with regional theories of spatial fragmentation, been unbundled spatially from each other subsequently. In “integrating” industries, by contrast, which account for one third of manufacturing employment, functions were initially dispersed from each other but have subsequently been rebundled spatially with each other. We hypothesize that this spatial rebundling is a consequence of offshoring, i.e., international fragmentation.

Keywords: fragmentation; localization; colocalization; functions; offshoring; Germany; K density; manufacturing (search for similar items in EconPapers)
JEL-codes: C19 F23 L60 R12 (search for similar items in EconPapers)
Date: 2012-02, Revised 2012-02
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Spatial fragmentation of industries by functions (2015)
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