Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98928
Authors: 
Dauth, Wolfgang
Südekum, Jens
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8161
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.
Subjects: 
structural change
local industry compositions
trade exposure
local employment growth
JEL: 
R11
O14
F16
Document Type: 
Working Paper

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