Assessing the localization pattern of German manufacturing and service industries: a distance-based approach

Koh, Hyun-Ju and Riedel, Nadine (2012) Assessing the localization pattern of German manufacturing and service industries: a distance-based approach. Regional Studies, 48 (5). pp. 823-843.

Abstract

This paper assesses the agglomeration pattern of four-digit industries in Germany using a rich data set on the population of German firms. To identify geographical agglomeration, the distance-based approach of Duranton and Overman of 2005 is followed. It is found that the location pattern of 71% of the manufacturing industries departs from randomness in the sense that plants exhibit significant geographical localization. In line with previous studies for the United Kingdom and France, the analysis suggests that especially traditional manufacturing industries exhibit strong localization patterns. Moreover, it is found that geographical localization is not restricted to the manufacturing sector, but that it plays an equally important role for service industries.

Item Type: Article
Keywords: Geographic concentration, Agglomeration, Localization
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 13 Aug 2014 14:35
Last Modified: 01 Nov 2016 11:43
Funders: University of Munich and University of Hohenheim
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5174

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