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External Control and Regional Development within the Federal Republic of Germany

Author

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  • Karl-Peter Schackmann-Fallis

    (Social Democratic Party, SPD-Bundestags fraktion Bundeshaus-AH402, D-5300 Bonn 1, Germany)

Abstract

This article reports the results of a questionnaire-based survey of externally controlled manufacturing plants in Trier, a peripheral region of the Federal Republic of Germany. Characteristics of the externally controlled plants are compared to those of independent plants in order to evaluate several hypotheses from the literature. Among the findings are that branch plants, in particular, tend to be more rapidly growing with employment relatively concentrated in production and lower skill occupations. They also have weaker input linkages within the region. Thus, the internal functional division of labor in multi-establishment firms produces positive quantitative effects on peripheral regions, but less encouraging qualitative effects that will affect their indigenous growth potential.

Suggested Citation

  • Karl-Peter Schackmann-Fallis, 1989. "External Control and Regional Development within the Federal Republic of Germany," International Regional Science Review, , vol. 12(3), pages 245-261, December.
    • Handle: RePEc:sae:inrsre:v:12:y:1989:i:3:p:245-261
    DOI: 10.1177/016001768901200301
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    References listed on IDEAS

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    1. Roger W. Schmenner, 1980. "Choosing New Industrial Capacity: On-Site EXpansion, Branching, and Relocation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(1), pages 103-119.
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    Cited by:

    1. Petr Pavlínek & Jan Ženka, 2016. "Value creation and value capture in the automotive industry: Empirical evidence from Czechia," Environment and Planning A, , vol. 48(5), pages 937-959, May.
    2. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.

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