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Profiles of local growth and industrial change: Facts and an Explanation

Wolfgang Dauth and Jens Südekum
Authors registered in the RePEc Author Service: Jens Suedekum ()

Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: In this paper we take a detailed look at the sectoral anatomy of regional growth in German regions over the period 1978-2008. In the aggregate, the German economy is characterized by a secular decline of the manufacturing sector and a rise of the modern service economy. This trend of structural change (Petty s law) by no means occurs uniformly across space, however. Some regions exhibit this trend even at an accelerated pace, while other regions develop their local economic structures against the trend and expand their manufacturing bases. We first develop a novel empirical approach that allows us to categorize all German regions into one out of three groups with pro-trend , anti-trend or featureless regional growth. Afterwards we show that the differential exposure to international trade is an important cause of the divergent patterns of local industrial change.

JEL-codes: R11 R12 F16 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-geo and nep-ure
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https://www.econstor.eu/bitstream/10419/100503/1/VfS_2014_pid_490.pdf (application/pdf)

Related works:
Working Paper: Profiles of local growth and industrial change: Facts and an explanation (2013) Downloads
Working Paper: Profiles of local growth and industrial change: facts and an explanation (2012) Downloads
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