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How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany

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  • Sven Wardenburg
  • Thomas Brenner

Abstract

Peripheral regions commonly appear to be less attractive to live in and policymakers all over the world are applying various measures to make them more attractive. This paper analyzes the effects of two very different measures: The German municipal fiscal equalization scheme and the German structural funds for economically weak areas (GRW). It focusses on the impact on perceived quality of life, measured through interregional migration between German labor market regions. Using a spatial vector autoregressive panel model, we find evidence that equalization transfers have a significant positive impact on regional net migration and contribute to the aim of regional equity. These effects are especially found for regions with low endogenous fiscal capacities. GRW funding reveals no significant effects on net migration rates in total, but short‐term effects in rural regions.

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  • Sven Wardenburg & Thomas Brenner, 2020. "How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1047-1073, November.
    • Handle: RePEc:bla:jregsc:v:60:y:2020:i:5:p:1047-1073
    DOI: 10.1111/jors.12500
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    Cited by:

    1. Sven Wardenburg & Thomas Brenner, 2021. "Analysing the spatio-temporal diffusion of economic change - advanced statistical approach and exemplary application," Working Papers on Innovation and Space 2021-01, Philipps University Marburg, Department of Geography.
    2. Thomas Brenner & Annekatrin Niebuhr, 2021. "Policy options for lagging regions—effects, new approaches and emerging challenges: introduction to the special issue," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(2), pages 125-130, October.
    3. Maruseva, Valeria & Kroll, Henning, 2024. "Potential and resilience: Evidence from peripheral regions of Germany," Discussion Papers "Innovation Systems and Policy Analysis" 82, Fraunhofer Institute for Systems and Innovation Research (ISI).
    4. Masoumeh Ghorbani & Thomas Brenner, 2021. "Prerequisites and initial developments for economic specialization in lagging regions—A study of specialized villages in Iran," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(2), pages 229-268, October.

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