Has the Euro Increased International Price Elasticities?
Oliver Holtemöller, Götz Zeddies
Empirica,
Nr. 1,
2013
Abstract
The introduction of the Euro has been accompanied by the hope that international competition between EMU member states would increase due to higher price transparency. This paper contributes to the literature by analyzing price elasticities in international trade flows between Germany and France and between Germany and the United Kingdom before and after the introduction of the Euro. Using disaggregated Eurostat trade statistics, we adopt a heterogeneous dynamic panel framework for the estimation of price elasticities. We suggest a Kalman-filter approach to control for unobservable quality changes which otherwise would bias estimates of price elasticities. We divide the complete sample, which ranges from 1995 to 2008, into two sub-samples and show that price elasticities in trade between EMU members did not change substantially after the introduction of the Euro. Hence, we do not find evidence for an increase in international price competition resulting from EMU.
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Related Variety, Unrelated Variety and Regional Functions: A spatial panel approach
Matthias Brachert, Alexander Kubis, Mirko Titze
Papers in Evolutionary Economic Geography,
2013
Abstract
The paper presents estimates for the impact of related variety, unrelated variety and the functions a region performs in the production process on regional employment growth in Germany. We argue that regions benefit from the existence of related activities that facilitate economic development. Thereby the sole reliance of the related and unrelated variety concept on standard industrial classifications (SIC) remains debatable. We offer estimations for establishing that conceptual progress can be made when the focus of analysis goes beyond solely considering industries. We develop an industry-function based approach of related and unrelated variety and test our hypothesis by the help of spatial panel approach. Our findings suggest that related variety as same as unrelated variety facilitate regional employment growth in Germany. However, the drivers behind these effects do differ. While the positive effect of related variety is driven by high degrees of relatedness in the regional “R&D” and “White-Collar”-functions, the effects of unrelated variety are spurred by “Blue Collar”-functions in this period.
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Regional Origins of Employment Volatility: Evidence from German States
Claudia M. Buch, M. Schlotter
Empirica,
Nr. 1,
2013
Abstract
Greater openness for trade can have positive welfare effects in terms of higher growth. But increased openness may also increase uncertainty through a higher volatility of employment. We use regional data from Germany to test whether openness for trade has an impact on volatility. We find a downward trend in the unconditional volatility of employment, paralleling patterns for output volatility. The conditional volatility of employment, measuring idiosyncratic developments across states, in contrast, has remained fairly unchanged. In contrast to evidence for the US, we do not find a significant link between employment volatility and trade openness.
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Local Economic Structure and Urban Growth in Germany
Michael Schwartz, Christoph Hornych, Martin T. W. Rosenfeld, Annette Illy
Journal of Urban Economics,
2010
Abstract
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The Causal Effect of Watching TV on Material Aspirations: Evidence from the “Valley of the Innocent”
Walter Hyll, Lutz Schneider
Journal of Economic Behavior and Organization,
Nr. 86,
2013
Abstract
The paper addresses the question of whether TV consumption has an impact on material aspirations. We exploit a natural experiment that took place during the period in which Germany was divided. Owing to geographical reasons TV programs from the Federal Republic of Germany could not be received in all parts of the German Democratic Republic. Therefore a natural variation occurred in exposure to West German television. We find robust evidence that watching TV is positively correlated with aspirations. Our identification strategy implies a causal relationship running from TV to aspirations. This conclusion resists various sets of alternative specifications and samples.
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Agglomeration and FDI in East German Knowledge-intensive Business Services
Philipp Marek
Economia Politica,
Nr. 3,
2012
Abstract
The focus of this article is the empirical identification of factors influencing Foreign Direct Investment (FDI) in the knowledge-intensive business service (KIBS) sector on the regional level of «Raumordnungsregionen» in East Germany. The analysis focuses on the impact of regional agglomeration and technological capability on the location decision of foreign investors and West German MNEs. It shows that localisation, patent activity and the share of employees with an R&D occupation affect significantly the location decision of FDI. This result provides an explanation for the strong concentration of KIBS in urban areas in a post-transition economy.
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Regions as Selection Environments? The Emergence of the Solar Industry in Germany from 1992 to 2008
Matthias Brachert, Christoph Hornych, Peter Franz
European Planning Studies,
Nr. 11,
2013
Abstract
The spatial evolution of the German solar industry is analysed in the light of the “window of locational opportunity” and the “selection environment” approach. The paper argues that differences in the regions' ability to promote the emergence of local external economies contribute to increasing regional differentiation in the German structure of the industry. Applied empirical methods enclose longitudinal firm entry and network analysis. A special focus is given upon the realignment processes in the science system. Our findings show a relatively rapid spatial concentration of production in eastern Germany since the year 2000. This process is accompanied by intensified networking between firms and between firms and universities as well as research institutes. The responsiveness of regional institutions and the self-organizing capabilities of the solar firms substantiate some propositions of the “selection environment” approach.
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New Tendencies in Competition Between Cities and Regions: Empirical Results from Case Studies in Germany and Austria
Martin T. W. Rosenfeld
Economy and Geography,
2013
Abstract
Es wird häufig davon ausgegangen, dass der Standortwettbewerb während der vergangenen Jahrzehnte aufgrund verschiedener externer Veränderungen deutlich zugenommen und zugleich sein Gesicht verändert hat. Moderne stadt- und regionalökonomische Theorien lassen es naheliegend erscheinen, dass bestimmte Faktoren an Gewicht gewonnen und damit veränderte Bedingungen für den Wettbewerb zwischen Städten und Regionen geschaffen haben. Die Intention des Beitrags besteht darin, mit Hilfe von Fallstudien mehr Licht in diese Veränderungen zu bringen.
Der Beitrag basiert auf Arbeiten einer interdisziplinären Arbeitsgruppe der Akademie für Raumforschung und Landesplanung (ARL). Im ersten Teil wird auf der Grundlage vorliegender theoretischer und empirischer Literatur zum Standortwettbewerb eine systematische Klassifizierung neuerer Tendenzen im Standortwettbewerb erarbeitet. Im zweiten Teil werden die Ergebnisse von Fallstudien präsentiert, die in ausgewählten Städten und Regionen Deutschlands und Österreichs durchgeführt wurden, um die Bedeutung der neueren Tendenzen in der Realität zu identifizieren. Für einige Städte und Regionen konnte festgestellt werden, dass die Tendenz der sinkenden Transport- und Transaktionskosten dort insoweit positive Effekte hatte, weil dort solche Branchen konzentriert sind, die die mit den sinkenden Transport- und Transaktionskosten verbundenen Technologien, Infrastrukturen und Dienstleistungen bereitstellen. Für andere Städte und Regionen konnte ein positiver Einfluss des Abbaus von Grenzbarrieren ermittelt werden. Speziell der Aufholprozess in Ostdeutschland wird allerdings u.a. durch Ballungsvorteile im Westen begrenzt. Obwohl die Effekte der neuen Formen des Standortwettbewerbs auf die wirtschaftliche Performance der betrachteten Raumeinheiten insgesamt eher gering waren, konnte doch eine deutliche Wirkung auf die politischen Entscheidungen zur strategischen Neuaufstellung der Städte und Regionen identifiziert werden.
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FDI Micro Database – Methodological Note – Survey 2012 in East Germany
Jutta Günther, Andrea Gauselmann, Björn Jindra, Philipp Marek, Jan Engelhardt
Einzelveröffentlichungen,
2012
Abstract
With the integration of post-communist countries into the European and global economy
after 1990, there was strong research interest into the role of multinational enterprises
(MNEs) for economic restructuring and technological catching-up. Most of the existing
empirical studies on locational determinants of FDI and host country effects did not take
account of East Germany. This might be for different reasons: Firstly, theoretical and
empirical difficulties derive from the fact that East Germany followed a distinct transition
pattern as it became a region subsumed in a larger and more mature economy. Secondly,
East Germany received private investment from foreign as well as West German firms. Only
the first can be considered as a foreign direct investment (FDI). Finally, there had long been
a lack of micro data to adequately analyse the activities of corresponding firms from a
production as well as technological perspective.
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