Seminar: Profiles of local growth and industrial change: Facts and an explanation

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Jens Suedekum (University of Duisburg-Essen)

Discussant: Wouter Vermeulen (CPB)

Language: English

Registration:  Please register by sending an email to seminars@cpb.nl.

Abstract subject
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.

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