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Title:Politicians' opinions on rivals in the competition for firms: An empirical analysis of reference points near a border PDF Logo
Authors:Geys, Benny
Osterloh, Steffen
Issue Date:2011
Series/Report no.:ZEW Discussion Papers 11-020
Abstract:Studies of spatial policy interdependence in (local) public policies usually concentrate on the relations between jurisdictions within a single analysed region, and disregard possible extra-regional effects. This paper evaluates the validity of such restriction by studying German local politicians' assessments of their jurisdictions' main competitors in the struggle to attract firms. We find that location near a border significantly undermines politicians' perception that the fiercest competitive pressure derives from jurisdictions within their own state. This effect sets in about 20km (12.5km) from a national (international) border. We also confirm that intranational borders are perceived as much less constraining for firms than international ones, even in a highly integrated area such as the European Union. Overall, these results indicate that nearest municipalities perceive each other as competitors regardless of the state or country where they are located. The practical implications of these findings for future studies on spatial policy interdependence are discussed.
Subjects:government interaction
competition
border effects
policy interdependence
JEL:D24
D60
H71
H72
Persistent Identifier of the first edition:urn:nbn:de:bsz:180-madoc-31584
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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