Regional development of employment and deconcentration processes in Eastern Germany

Abstract

"The paper examines the development of regional employment in eastern Germany. An approach by Möller & Tassinopoulos is taken up for the analyses using very differentiated data from the employment statistics. This approach uses a generalisation o an econometric analogue of the common shift-share method, which is suggested here as a new 'workhorse' for regional analyses. The results show that deconcentration processes play a key role in explaining regional disparities. Inverse localisation and positive urbanisation effects are visible. On the one hand the development can be interpreted as a long-term consequence of the transformation,. since the regions of the GDR were virtually characterised by monostructures. On the other hand similar but weaker deconcentration processes are currently occurring in general in European and North American regions and have also been shown for western Germany by Möller & Tassinopoulos. Such processes can be understood with approaches of 'New Economic Geography' (based on Krugman et al.), whereas the general significance of industry specific effects, which is also becoming clear, can be explained using approaches of structural change, following amongst others Appelbaum & Schettkat. In addition, positive impulses of the qualification structure on regional development are detectable, which can be understood by endogenous growth theory." (Author's abstract, IAB-Doku) ((en))

Cite article

Blien, U. & Wolf, K. (2002): Regional development of employment and deconcentration processes in Eastern Germany. An analysis with econometric analogue to shift-share techniques. In: I. Johansson & R. Dahlberg (Hrsg.) (2002): Uddevalla Symposium 2001 : regional economies in transition. Papers presented at the Uddevalla Symposium 2001, 14-16 June, Vänersborg, Sweden (University of Trollhättan/Uddevalla. Research report, 02, 01), p. 179-192.