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Globalization and local profiles of economic growth and industrial change

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  • Dauth, Wolfgang
  • Suedekum, Jens

Abstract

We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend - also known as Petty's law - is not uniform across space, however. Some regions exhibit it at an even accelerated pace, while other regions have reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with protrend, anti-trend or featureless growth. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the regional profiles of growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors.

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  • Dauth, Wolfgang & Suedekum, Jens, 2014. "Globalization and local profiles of economic growth and industrial change," DICE Discussion Papers 142, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:142
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    2. Maximilian v. Ehrlich & Henry G. Overman, 2020. "Place-Based Policies and Spatial Disparities across European Cities," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 128-149, Summer.
    3. Jens Horbach & Markus Janser, 2016. "The role of innovation and agglomeration for employment growth in the environmental sector," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 488-511, August.
    4. Anne Margarian & Cécile Détang-Dessendre & Aleksandra Barczak & Corinne Tanguy, 2022. "Endogenous rural dynamics: an analysis of labour markets, human resource practices and firm performance," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.
    5. Arntz, Melanie & Ivanov, Boris & Pohlan, Laura, 2022. "Regional Structural Change and the Effects of Job Loss," IZA Discussion Papers 15313, Institute of Labor Economics (IZA).
    6. Gefu Liang & Dajia Yu & Lifei Ke, 2021. "An Empirical Study on Dynamic Evolution of Industrial Structure and Green Economic Growth—Based on Data from China’s Underdeveloped Areas," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    7. Dauth, Wolfgang & Findeisen, Sebastian & Südekum, Jens, 2017. "Außenhandel und Erwerbsverläufe im Verarbeitenden Gewerbe: Arbeitnehmer in Deutschland profitieren vom Außenhandel - aber nicht alle (German workers benefit from international trade + but not all of t," IAB-Kurzbericht 201715, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Michael Peneder & Benjamin Bittschi & Angela Köppl & Peter Mayerhofer & Thomas Url, 2022. "Das WIFO-Radar der Wettbewerbsfähigkeit der österreichischen Wirtschaft 2022," WIFO Monatsberichte (monthly reports), WIFO, vol. 95(12), pages 809-822, December.
    9. Kozo Kiyota, 2023. "Spatially uneven pace of deindustrialisation within a country," The World Economy, Wiley Blackwell, vol. 46(7), pages 2187-2230, July.
    10. Bo Liu & Desheng Xue & Yiming Tan, 2019. "Deciphering the Manufacturing Production Space in Global City-Regions of Developing Countries—a Case of Pearl River Delta, China," Sustainability, MDPI, vol. 11(23), pages 1-26, December.
    11. Sung-Gook Choi & Deok-Sun Lee, 2019. "Engel's law in the commodity composition of exports," Papers 1911.01568, arXiv.org.
    12. Michael Peneder & Benjamin Bittschi & Angela Köppl & Peter Mayerhofer & Thomas Url, 2023. "The WIFO Radar of Competitiveness for the Austrian Economy 2022," WIFO Reports on Austria, WIFO, issue 2, January.
    13. Yazgan, Sekip & Marangoz, Cumali & Bulut, Emre, 2022. "The turning point of regional deindustrialization in the U.S.: Evidence from panel and time-series data," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 294-304.
    14. Sascha Sardadvar & Christian Reiner, 2021. "Austrian regions in the age of globalisation: Trade exposure, urban dynamics and structural change," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 603-643, June.
    15. Peter Mayerhofer & Julia Bachtrögler-Unger & Klaus Nowotny & Gerhard Streicher, 2021. "Ökonomische Wirkung von Interventionen der Europäischen Struktur- und Investitionsfonds in Österreich seit 1995," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(2), pages 139-150, February.
    16. Guan, Chenghua & Huang, Jinyuan & Jiang, Ruyue & Xu, Wanting, 2023. "The impact of pilot free trade zone on service industry structure upgrading," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 472-491.
    17. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920, February.
    18. Claudia V. Montanía & Miguel A. Márquez & Teresa Fernández‐Núñez & Geoffrey J. D. Hewings, 2024. "Toward a more comprehensive shift‐share analysis: An illustration using regional data," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    19. Saudi Arabian Monetary Authority, 2018. "Macroeconomic and distributional effects of globalisation," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and deglobalisation, volume 100, pages 311-319, Bank for International Settlements.
    20. Nishi, Hiroshi, 2022. "Industrial sources and unevenness of regional employment resilience in Japan," MPRA Paper 113530, University Library of Munich, Germany.
    21. Lisa Simon, 2019. "Microeconometric Analyses on Determinants of Individual Labour Market Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 83.
    22. Giulia Urso & Marco Modica & Alessandra Faggian, 2019. "Resilience and Sectoral Composition Change of Italian Inner Areas in Response to the Great Recession," Sustainability, MDPI, vol. 11(9), pages 1-15, May.

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    More about this item

    Keywords

    structural change; local industry compositions; trade exposure; local employment growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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