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This paper investigates the mutual impact channels of Germany's major regional policy instrument (GRW) on regional economic development. Different from earlier studies which have predominately focused on a partial assessment of output effects, we explicitly endogenize the factor inputs of the underlying production function. This allows us to comprehensively assess the role of the GRW in driving per capita output, employment, human and physical capital intensities as well as the region's technological growth. The results from a spatial panel vector autoregressive model show that GRW funding has significant positive effects on regional output, the employment rate and human capital intensity. [ABSTRACT FROM AUTHOR]

Regional governments' discretion in allocating structural funds is limited by the competences of the European Commission to control fiscal activities of decentralized governments. Regional political behaviour and the complexity of the implementation process shape the policy outcome. Who benefits from structural funds? In this paper, we analyse implementation of ERDF funds in East Germany in the financial perspective 2007 to 2013. We find that less rural regions and some economic sectors benefit by more than others. A few beneficiaries control the highest share of the funds. The Gini coefficients vary by group of actor and show high inequality in the distribution of the funds. This indicates that a few actors have better access to the funds than others. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of industry specific regional specialization on employment growth in German planning regions between 1998 and 2007. The paper investigates Germany as a whole as well as Western and Eastern Germany separately. By using a shift-share regression approach the paper provides new findings about the existence of industry-specific localization advantages. The results show that inverse localization advantages play a major role in explaining regional disparities in Germany. This involves a process of deconcentration of economic activity. In addition, differences between Eastern and Western Germany can also be identified. Resumen Este artículo analiza el impacto de la especialización regional específica por industrias sobre el crecimiento del empleo en las regiones de planificación alemanas entre 1998 y 2007. El artículo estudia Alemania en su totalidad, así como Alemania Occidental y Oriental por separado. Mediante la utilización de un enfoque de regresión shift-share, el artículo aporta nuevos resultados acerca de la existencia de ventajas de localización específicas por industria Los resultados muestran que las ventajas de localización inversa tienen un papel clave a la hora de explicar las disparidades regionales en Alemania. Esto implica un proceso de desconcentración de la actividad económica. Además, también se pueden identificar diferencias entra Alemania Occidental y Alemania Oriental. [ABSTRACT FROM AUTHOR]

This paper applies Verdoorn's and Okun's law to derive efficient estimates of the employment and unemployment threshold in the Unified Germany. The analysis is built on a disaggregated dataset of regional labour markets, where spatial dependencies are taken into account. Especially, a spatial SUR model is proposed utilising the eigenfunction decomposition approach suggested by Griffith (1996, 2000 ). The thresholds turn out to be unstable over time. However, minimum output growth sufficient for a rise in employment is below the level needed for a drop in the unemployment rate. If spatial effects are ignored, the thresholds seem to be markedly overrated. [ABSTRACT FROM AUTHOR]

We extend in this analysis an approach introduced by Patterson and suggested by Möller and Tassinopoulos. Our approach uses a generalization of an econometric analogue of the common shift-share method, suggested here as a new “workhorse” for regional analyses. The results obtained with this shift-share-regression, and with very differentiated data from the employment statistics of eastern Germany, show that processes of deconcentration play a role in explaining regional disparities, since inverse localization and positive urbanization effects are visible. The relevant processes can be understood by implementing approaches of “new economic geography”, structural change and endogenous growth theory. [ABSTRACT FROM AUTHOR]