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What Determines Relative Sectoral Investment Patterns in EU Regions?

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  • Stirböck, Claudia

Abstract

This study analyses relative sectoral investment patterns in EU regions. In an exploratory spatial data analysis, spatial clusters of high relative investments can be identified for some sectors. In the econometric analysis, we control for heteroscedasticity and potential endogeneity and find that investments in manufacturing sectors are attracted by central regions, investments in services sectors, instead, by administrative centres as well as regions far away from their national administrative centre. A higher local level of sectoral economies of scale and of productivity strongly increases investments in manufacturing sectors. Labour cost differentials, however, are insignificant in explaining the location of relative sectoral investments.

Suggested Citation

  • Stirböck, Claudia, 2002. "What Determines Relative Sectoral Investment Patterns in EU Regions?," ZEW Discussion Papers 02-55, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:567
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    Cited by:

    1. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.

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    More about this item

    Keywords

    Regional Specialisation; Sectoral Investments; Exploratory Spatial Data Analysis; Cross-Section Time-Series Regressions;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F2 - International Economics - - International Factor Movements and International Business

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