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The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities

Author

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  • Eva Wolfschuetz

    (University of Kassel)

Abstract

Does inter-municipal cooperation (IMC) enhance municipal economic performance? This study employs marginal structural models to address selection into treatment and time-dependent confounding to estimate the effectiveness of IMC in the field of local business development. I use data on municipalities in four West-German states, Lower Saxony, Hesse, Rhineland Palatinate, and Bavaria during the years 2008-2015. I find that, over time, IMC has a positive effect on local economic performance and local business development resources are spent more productively in cooperating municipalities.

Suggested Citation

  • Eva Wolfschuetz, 2020. "The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities," MAGKS Papers on Economics 202005, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202005
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2020/05-2020_wolfschuetz.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lionel WILNER, 2020. "How do citizens perceive centralization reforms? Evidence from the merger of French regions," Working Papers 2020-20, Center for Research in Economics and Statistics, revised 07 Jun 2021.

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    More about this item

    Keywords

    Inter-municipal cooperation; economic development; marginal structural models; Germany;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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