Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany
Christoph Hornych, Michael Schwartz
Post-Communist Economies,
2009
Abstract
Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the western part of the country. To face this weakness a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analysing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted-U relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.
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International Climate Policy after Kyoto – Economic Challenges Ahead
Wilfried Ehrenfeld
Wirtschaft im Wandel,
No. 12,
2009
Abstract
Die Evidenz nimmt zu, dass der Anstieg der Treibhausgasemissionen seit Beginn des 20. Jahrhunderts die globale Durchschnittstemperatur zunehmen lässt. Eine Begrenzung des Temperaturanstiegs auf 2°C soll zumindest die schwerwiegendsten Folgen der globalen Erwärmung vermeiden. Dazu müssten die Treibhausgasemissionen bis spätestens zum Jahr 2015 ihren Maximalwert erreicht haben und von da an bis zum Jahr 2050 weltweit drastisch reduziert werden.
Aus ökonomischer Sicht ergeben sich eine Reihe bedeutsamer Fragenkomplexe:
Wie ist zunächst die Ausgangslage in wirtschaftlichen Kategorien zu beschreiben? Hierzu sind vorab die Emissionen nach Regionen und Sektoren aufzuzeigen, um daraufhin die Anpassungsmöglichkeiten beschreiben zu können.
Welche Kosten und welche Erträge sind mit einer Klimapolitik verbunden? So liegt die Bandbreite des geschätzten Schadens im Fall eines ungebremsten Klimawandels zwischen jährlich 5% und 20% des weltweiten Bruttoinlandsprodukts (BIP); dem stehen Schätzungen von rund 1% des globalen BIP gegenüber, die zur Stabilisierung der Konzentration von Treibhausgasen in der Atmosphäre aufzuwenden wären.
Wie sind die globalen Ziele regional und sektoral zu verteilen und welche ökonomischen Instrumente sind hierfür zu empfehlen? Offensichtlich werden handelbare Emissionslizenzen präferiert, womit Ausgangszuteilungen und die Art der Zuteilung einerseits, die Handelbarkeit andererseits eine herausragende Rolle spielen.
Welche politökonomischen Konflikte ergeben sich und welche Empfehlungen können Ökonomen geben, um diese zielorientiert zu lösen? Was ist abschließend wirtschaftspolitisch zu empfehlen, um insbesondere im Sinne des Abschlusses eines internationalen Klimaabkommens glaubhaft zu bleiben?
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Book Review on: Mahmound A.T. Elkhafif, Exchange Rate Policy and Currency Substitution: The Case of Africa’s Emerging Economies, 2002, Economic Research Papers No. 71, Abidjan: African Development Bank
Tobias Knedlik
African Development Perspectives Yearbook: Private and Public Sectors: Towards a Balance,
2004
Abstract
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New Growth and Poverty Alleviation Strategies for Africa – Institutional and Local Perspectives. African Development Perspectives Yearbook, Vol. 14
Tobias Knedlik, Karl Wohlmuth, Philippe Burger, Achim Gutowski, Mareike Meyn, T. (eds) Urban, Afeikhena Jerome
,
2009
Abstract
The Volume XIV analyses the “New Growth and Poverty Alleviation Strategies for Africa“. Institutional issues and perspectives in designing new growth and poverty alleviation strategies are considered in various case studies (Cote d'Ivoire, Nigeria, Botswana and Tanzania). Other studies deal with institutional problems of resource-rich countries after conflict (Sudan) and with the institutions to enhance environmental protection parallel to economic growth and poverty reduction (Niger). Further studies deal with institutions to bridge the gap between formal and informal entrepreneurial sectors in Kenya and Tanzania. Local issues and perspectives for designing new growth and poverty alleviation strategies are considered in case studies on rural-urban development gaps in Tanzania and on microfinance as an instrument for new growth and poverty alleviation strategies (Tanzania and Eritrea). A study on small farmers in Ghana provides information on the role they can play in value chains. Two studies on Nigeria highlight the local and the sub-regional health and poverty alleviation programmes and the relation to growth. Book reviews and book notes on the theme are part of the volume. This volume builds the foundation for a comprehensive strategy of policy reforms in Africa so as to integrate new growth and poverty alleviation strategies. Complementary to Volume XIV is Volume XIII on “New Growth and Poverty Alleviation Strategies for Africa - Interational and Regional Perspectives“. Both volumes are of importance for all those who work in African countries as officials, executives, managers, researchers, and policy-makers, but also for all those who actively support Africa's development concerns at the international, regional, country, local, and project levels. They will experience this Volume XIV and also the complementary Volume XIII as indispensable sources of insight, reference, and inspiration.
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Growth, Employment, Poverty Alleviation and Institutional Development – Lessons from Country Cases – An Introduction
Tobias Knedlik, Karl Wohlmuth
African Development Perspectives Yearbook, No. 14,
2009
Abstract
Economic growth is a central concept in judging the progress of economic development. Since the early years of economic sciences, economists aim to explain the differences in the production of goods and services among economies. Economic policy focuses on economic growth as the basis for the well-being of nations. The simple idea is that the extension of the productive capacity and finally the increase of consumption possibilities in an economy is the basis of all policies aiming to increase a nation’s welfare. It is therefore not surprising that aims of development policy are often linked to specific economic growth targets. So the United Nation’s Millennium Development Goals are assumed only to be achieved if a certain level of economic growth can be reached.
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Will There Be a Shortage of Skilled Labor? An East German Perspective to 2015
Herbert S. Buscher, Eva Dettmann, Marco Sunder, Dirk Trocka
IWH Discussion Papers,
No. 13,
2009
Abstract
We analyze the supply and demand of skilled labor in an East German federal state, Thuringia. This state has been facing high unemployment in the course of economic transformation and experiences population ageing and shrinking more rapidly than most West European regions. In a first step, we use extrapolation techniques to forecast labor supply and demand for the period 2009-2015, disaggregated by type of qualification. The analysis does not corroborate the notion of an imminent skilled-labor shortage but provides hints for a tightening labor market for skilled workers. In the second step, we ask firms about their appraisal of future recruitment conditions, and both current and planned strategies in the context of personnel management. The majority of firms plan to expand further education efforts and hire older workers. The study closes with policy recommendations to prevent occupational mismatch.
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Keeping the Bubble Alive! The Effects of Urban Renewal and Demolition Subsidies in the East German Housing Market
Dominik Weiß
IWH Discussion Papers,
No. 11,
2009
Abstract
German urban renewal programs are favoring the cities in the Eastern part since the re-unification in 1990. This was accompanied additionally by attractive tax incentives, designed as an accelerated declining balance method of depreciation for housing investments during the late 1990s. The accumulated needs for comfortable housing after 40 years of a disastrous housing policy of the GDR era were generally accepted as justification for the subvention policy. But various subsidies and tax incentives caused a construction boom, false allocations, and a price bubble in Eastern Germany. After recognizing that the expansion of housing supply was not in line with the demographic development and that high vacancy rates were jeopardizing housing companies and their financial backers, policy changed in 2001. Up to now, the government provides demolition grants to reduce the vast oversupply. By means of a real option approach, it is ex-plained how different available forms of subsidies and economic incentives for landlords lift real estate values. The option value representing growth expectations and opportunities is calculated as an observable market value less an estimated fundamental value. Empirical results disclose higher option premiums for cities in Eastern Germany and a strong correlation of the option premium with urban renewal spending.
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Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany
Christoph Hornych, Michael Schwartz
IWH Discussion Papers,
No. 8,
2009
Abstract
Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the Western part of the country. To face this weakness, a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analyzing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted U-shaped relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.
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Is the European Monetary Union an Endogenous Currency Area? The Example of the Labor Markets
Herbert S. Buscher, Hubert Gabrisch
IWH Discussion Papers,
No. 7,
2009
Abstract
Our study tries to find out whether wage dynamics between Euro member countries became more synchronized through the adoption of the common currency. We calculate bivarate correlation coefficients of wage and wage cost dynamics and run a model of endogenously induced changes of coefficients, which are explained by other variables being also endogenous: trade intensity, sectoral specialization, financial integration. We used a panel data structure to allow for cross-section weights for country-pair observations. We use instrumental variable regressions in order to disentangle exogenous from endogenous influences. We applied these techniques to real and nominal wage dynamics and to dynamics of unit labor costs. We found evidence for persistent asymmetries in nominal wage formation despite a single currency and monetary policy, responsible for diverging unit labor costs and for emerging trade imbalances among the EMU member countries.
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