Spillover Effects of Spatial Growth Poles - a Reconciliation of Conflicting Policy Targets?
Alexander Kubis, Mirko Titze, Joachim Ragnitz
IWH Discussion Papers,
No. 8,
2007
Abstract
Regional economic policy faces the challenge of two competing policy goals - reducing regional economic disparities vs. promoting economic growth. The allocation of public funds has to weigh these goals particularly under the restriction of scarce financial re- sources. If, however, some region turns out to be a regional growth pole with positive spillovers to its disadvantaged periphery, regional policies could be designed to recon- cile the conflicting targets. In this case, peripheral regions could indirectly participate in the economic development of their growing cores. We start our investigation by defining and identifying such growth poles among German regions on the NUTS 3 administrative level based on spatial and sectoral effects. Using cluster analysis, we determine significant characteristics for the general identification of growth poles. Patterns in the sectoral change are identified by means of the change in the employment. Finally, we analyze whether and to what extent these growth poles ex- ert spatial spillover effects on neighbouring regions and thus mitigate contradictory in- terests in regional public policy. For this purpose, we apply a Spatial-Cross-Regressive- Model (SCR-Model) including the change in the secondary sector which allows to con- sider functional economic relations on the administrative level chosen (NUTS 3).
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Vertical Intra-industry Trade between EU and Accession Countries
Hubert Gabrisch
IWH Discussion Papers,
No. 12,
2006
Abstract
The paper analyses vertical intra-industry trade between EU and Accession countries, and concentrates on two country-specific determinants: Differences in personal income distribution and in technology. Both determinants have a strong link to national policies and to cross-border investment flows. In contrast to most other studies, income distribution is not seen as time-invariant variable, but as changing over time. What is new is also that differences in technology are tested in comparison with cost advantages from capital/labour ratios. The study applies panel estimation techniques with GLS. Results show country-pair fixed effects to be of high relevance for explaining vertical intraindustry trade. In addition, bilateral differences in personal income distribution and their changes are positive related to vertical intra-industry trade in this special regional integration framework; hence, distributional effects of policies matter. Also, technology differences turn out to be positively correlated with vertical intra-industry trade. However, the cost variable (here: relative GDP per capita) shows no clear picture, particularly not in combination with the technology variable.
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Are Botswana and Mozambique ready for CMA enlargement?
Tobias Knedlik
Botswana Journal of Economics,
No. 3,
2006
Abstract
The paper elaborates on the appropriateness of a potentially enlarged Common Monetary Area in Southern Africa including Botswana and Mozambique. The theory of optimum currency areas including some extensions by accounting for costs of non-integration and considering the external relations of currency areas are presented. Various indicators such as the structure of the economies, interest rates, inflation rates, exchange rates, factor mobility and trading partners are observed empirically. The paper concludes that current changes in the exchange rate policy of Botswana are expected to lead to increasing, though already high, convergence with CMA countries. Botswana is therefore an appropriate candidate for CMA enlargement. Mozambique is converging towards South Africa but still remains on a lower level. Taking into account the costs of non-integration, however, the target of integration should be formulated for the medium term.
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An analysis of household electricity price developments in Germany since liberalization
Christian Growitsch, Felix Müsgens
Externe Publikationen,
2005
Abstract
Despite the liberalization of energy markets in 1998, household electricity prices in 2004 are nearly the same as 1998, indicating a failure of market restructuring. However, such a general consideration is misleading for two main reasons. Firstly, the price development shows significant differences among the stages of the value chain. Secondly, the underlying cost structure might have changed from 1998 to 2004. While such effects can be expected to level out over time, they can distort the comparison of a small period of observation. For these reasons, we analyzed the different price components at a detailed level, finding a considerable price reduction of about 32% in generation and a much lower reduction of 13% in transmission and distribution tariffs. These decreases have been mostly compensated by a significant increase in taxes and subsidies (+56%).
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The Impact of Technology and Regulation on the Geographical Scope of Banking
Hans Degryse, Steven Ongena
Oxford Review of Economic Policy,
No. 4,
2004
Abstract
We review how technological advances and changes in regulation may shape the (future) geographical scope of banking. We first review how both physical distance and the presence of borders currently affect bank lending conditions (loan pricing and credit availability) and market presence (branching and servicing). Next we discuss how technology and regulation have altered this impact and analyse the current state of the European banking sector. We discuss both theoretical contributions and empirical work and highlight open questions along the way. We draw three main lessons from the current theoretical and empirical literature: (i) bank lending to small businesses in Europe may be characterized both by (local) spatial pricing and resilient (regional and/or national) market segmentation; (ii) because of informational asymmetries in the retail market, bank mergers and acquisitions seem the optimal route of entering another market, long before cross-border servicing or direct entry are economically feasible; and (iii) current technological and regulatory developments may, to a large extent, remain impotent in further dismantling the various residual but mutually reinforcing frictions in the retail banking markets in Europe. We conclude the paper by offering pertinent policy recommendations based on these three lessons.
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Business Cycle Volatility in Germany
Claudia M. Buch, J. Doepke, C. Pierdzioch
German Economic Review,
2004
Abstract
Stylized facts suggest that output volatility in OECD countries has declined in recent years. The causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural changes in output volatility in Germany can be detected. We report evidence that output volatility has declined in Germany. It is difficult to answer the question whether this decline in output volatility reflects good economic and monetary policy or merely ‘good luck’.
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The Reform of Local Public Services of General Interest in Europe
Peter Haug, Martin T. W. Rosenfeld
Applied Economics Quarterly (Supplement),
2004
Abstract
The benefits of a reduced supply of local public services may more than outweigh the supposed welfare losses. This was suggested by various theoretical and empirical investigations in many fields of economics during the last decades. Nevertheless, local and national politicians, trade unionists, charities, and other lobbyists have succeeded in preventing further liberalisation of “services of general interest” in Europe. This article examines why these preserve agents have been and are still successful. The analysis is based on an institutional economic approach. Several policy measures and institutional changes are suggested to either reduce influence of preserve agents or to compensate them for their losses.
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Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap
Johannes Stephan
IWH-Sonderhefte,
No. 5,
2003
Abstract
This report summarises the results generated in empirical analysis within a larger EU 5th FP RTD-project on the determinants of productivity gaps between the current EU-15 and accession states in Central East Europe. The focus of research in this part of the project is on sectoral specialisation patterns emerging as a result of intensifying integration between the current EU and a selection of six newly acceding economies, namely Estonia, Poland, the Czech and Slovak Republics, Hungary and Slovenia. The research-leading question is concerned with the role played by the respective specialisation patterns for (i) the explanation of observed productivity gaps and for (ii) the projection of future potentials of productivity growth in Central East Europe.
For the aggregated level, analysis determines the share of national productivity gaps accountable to acceding countries’ particular sectoral patterns, and their role for aggregate productivity growth: in Poland, the Slovak Republic and Hungary, sectoral shares of national productivity gaps are considerable and might evolve into a ‘barrier’ to productivity catch-up.Moreover, past productivity growth was dominated by a downward adjustment in employment rather than structural change. With the industrial sector of manufacturing having been identified as the main source of national productivity gaps and growth, the subsequent analysis focuses on the role of industrial specialisation patterns and develops an empirical model to project future productivity growth potentials. Each chapter closes with some policy conclusions.
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Opportunities and Risks for Regional Development in Former East German Brown Coal Mining Areas: The Case of the “Geiseltal” Mining Area in Saxony-Anhalt
Peter Franz
Wirtschaft im Wandel,
No. 11,
2003
Abstract
Die Sanierung ehemaliger Braunkohletagebaustandorte stellt ein wichtiges Teilstück des seit 1990 stattfindenden ökonomischen und ökologischen Umstrukturierungsprozesses in Ostdeutschland dar. Durch den Sanierungsfortschritt werden in jüngerer Zeit vermehrt rekultivierte Flächen für neue Nutzungen wieder verfügbar und bereichern das Entwicklungspotenzial der betreffenden Regionen. Diese neu entstehenden Potenziale werden jedoch nicht automatisch für die Wirtschaftsentwicklung der betreffenden Region wirksam, sondern werden in ihrer Wirkung durch verschiedene Hemmnisse und Risiken gebremst. Im Fall des ehemaligen Tagebaustandorts des Geiseltals im Süden Sachsen-Anhalts zeigen sich solche Hemmnisse in Form einer starken Gebundenheit an die Bergbau- und Industrietradition, in den expandierenden Flächenschutzinteressen von Naturschutzorganisationen und in den nicht anforderungsgerechten Organisationsformen der regionalen politischen Kräfte. Bei Festlegung auf eine tourismusbezogene Entwicklungsstrategie ergeben sich Risiken bezüglich der tatsächlichen Dauer des restlichen Rekultivierungsprozesses und durch konkurrierende Standorte mit ähnlichen Entwicklungszielen.
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New industries in Eastern Germany - The state of the development of modern biotechnologies in Saxony-Anhalt
Walter Komar
Wirtschaft im Wandel,
No. 16,
2002
Abstract
Ostdeutsche Regionen können ihr Wirtschafts- und Innovationspotential erhöhen, wenn sie sich auf Technologien orientieren, die bedeutsame Wachstumseffekte auslösen. Eine solche Wachstumsbranche ist die moderne Biotechnologie. In diesem Aufsatz werden die Entwicklung und die Standortfaktoren der Biotechnologiebranche in Sachsen-Anhalt analysiert und mit der Bioregion München verglichen, die zu den führenden Bioregion in Deutschland zählt. Die Analyse zeigt, dass die Entwicklung der modernen Biotechnologie in ostdeutschen Regionen begünstigt werden kann, wenn die Standortfaktoren verbessert werden.
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