Regional investment incentives in Germany: Impacts on factor demand and growth

Autor:	Gerhard Untiedt, Hans Joachim Schalk
Rok vydání:	2000
Předmět:	Macroeconomics media_common.quotation_subject General Social Sciences Convergence (economics) Production function Per capita income Investment (macroeconomics) Regional policy Economics Production (economics) Function (engineering) Productivity General Environmental Science media_common
Zdroj:	The Annals of Regional Science. 34:173-195
ISSN:	1432-0592 0570-1864
Popis:	The aim of this paper is to analyse the effects of regional investment incentives - a main component of regional policy in West Germany - on regional factor demand (investment and labor), growth and convergence of per capita income for the period 1978 to 1989. Demand for investment and labor arise from a model of cost minimization at given output with a putty-clay production function. The production function allows for regional technical efficiency. To model the output effect on factor demand an auxiliary output function is specified. In estimating the functions attention is given to the short-run dynamics and the long-run behaviour of factor demand by error-correction models. The empirical long-run relationships are then used to simulate the effects of regional investment incentives. In contrast to most studies for other countries the empirical results provide evidence that regional policy in Germany induces not only additional investment but also creates positive employment effects. However, the effects of regional investment incentives on growth and convergence of labor productivity are negligible.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::3c738b3808fb260fd3c1e2e69c87a380 https://doi.org/10.1007/s001689900008 Zobrazit plný text záznamu Plný text ve formátu PDF