Template-Type: ReDIF-Paper 1.0

Author-Name: Hyun-Ju Koh
Author-X-Name-First: Hyun-Ju
Author-X-Name-Last: Koh

Author-Name: Nadine Riedel
Author-X-Name-First: Nadine
Author-X-Name-Last: Riedel

Title: Assessing the Localization Pattern of German Manufacturing & Service Industries - A Distance Based Approach

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, we follow the distance based approach of Duranton and Overman
(2005) and find that the location pattern of 78% of our industries departs from ran-
domness in the sense that firms exhibit significant geographical localization. In line
with previous studies on manufacturing firms in the UK and France, our analysis
suggests that especially traditional manufacturing industries exhibit strong localiza-
tion patterns. Moreover, we find that geographical localization is not restricted to
the manufacturing sector but that it plays an equally, or even more important role
in service industries.
Length:  31 pages
Creation-Date:  2009-08
File-URL: http://www.bgpe.de/texte/DP/080_koh.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 080
Classification-JEL: R12
Keywords: Geographic concentration, agglomeration 
Handle: RePEc:bav:wpaper:080_koh