Details
| Original language | English |
|---|---|
| Pages (from-to) | 1-21 |
| Number of pages | 21 |
| Journal | Competitiveness Review |
| Volume | 33 |
| Issue number | 7 |
| Publication status | Published - 2022 |
Abstract
Purpose: This study aims to elucidate the quantitative and qualitative differences in employment development between German districts. Building on ideas from competitive development and resource-based theory, the paper particularly seeks to explain enduring East-West differences between rural regions by two different forms of competitive advantage: cost leadership and quality differentiation. Design/methodology/approach: This study follows a two-step empirical approach: First, an extended shift-share regression is conducted to analyze employment development in Western and Eastern German districts between 2007 and 2016. Second, the competitive share effect and other individual terms of the shift-share model are further examined in additional regressions using regional economic characteristics as exogenous variables. Findings: The findings suggest that the above-average employment growth of the rural districts in the West is owed to the successful exploitation of experience in manufacturing that has been gathered by firms in the past 100 years or so. While their strategy is largely based on advanced and specialized resources and an innovation-driven differentiation strategy, the relatively weak employment development of Eastern rural districts might be explained by a lack of comparable long-term experiences and the related need to focus on the exploitation of basic and general resources and, accordingly, on the efficiency-based strategy of cost leadership. Originality/value: This study offers an in-depth empirical analysis of how the competitive share effect, i.e. region-specific resources beyond industry structure, contributes to regional employment development. The analysis reveals that quantitative differences in rural employment development are closely related to qualitatively different levels of input factors and different regimes of competitiveness.
Keywords
- East Germany, Employment development, Rural regions, Shift-share regression, Structural change, West Germany
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Business and International Management
- Business, Management and Accounting(all)
- General Business,Management and Accounting
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In: Competitiveness Review, Vol. 33, No. 7, 2022, p. 1-21.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - One economy, but different growth regimes
T2 - why Germany’s rural east is still lagging
AU - Margarian, Anne
AU - Hundt, Christian
PY - 2022
Y1 - 2022
N2 - Purpose: This study aims to elucidate the quantitative and qualitative differences in employment development between German districts. Building on ideas from competitive development and resource-based theory, the paper particularly seeks to explain enduring East-West differences between rural regions by two different forms of competitive advantage: cost leadership and quality differentiation. Design/methodology/approach: This study follows a two-step empirical approach: First, an extended shift-share regression is conducted to analyze employment development in Western and Eastern German districts between 2007 and 2016. Second, the competitive share effect and other individual terms of the shift-share model are further examined in additional regressions using regional economic characteristics as exogenous variables. Findings: The findings suggest that the above-average employment growth of the rural districts in the West is owed to the successful exploitation of experience in manufacturing that has been gathered by firms in the past 100 years or so. While their strategy is largely based on advanced and specialized resources and an innovation-driven differentiation strategy, the relatively weak employment development of Eastern rural districts might be explained by a lack of comparable long-term experiences and the related need to focus on the exploitation of basic and general resources and, accordingly, on the efficiency-based strategy of cost leadership. Originality/value: This study offers an in-depth empirical analysis of how the competitive share effect, i.e. region-specific resources beyond industry structure, contributes to regional employment development. The analysis reveals that quantitative differences in rural employment development are closely related to qualitatively different levels of input factors and different regimes of competitiveness.
AB - Purpose: This study aims to elucidate the quantitative and qualitative differences in employment development between German districts. Building on ideas from competitive development and resource-based theory, the paper particularly seeks to explain enduring East-West differences between rural regions by two different forms of competitive advantage: cost leadership and quality differentiation. Design/methodology/approach: This study follows a two-step empirical approach: First, an extended shift-share regression is conducted to analyze employment development in Western and Eastern German districts between 2007 and 2016. Second, the competitive share effect and other individual terms of the shift-share model are further examined in additional regressions using regional economic characteristics as exogenous variables. Findings: The findings suggest that the above-average employment growth of the rural districts in the West is owed to the successful exploitation of experience in manufacturing that has been gathered by firms in the past 100 years or so. While their strategy is largely based on advanced and specialized resources and an innovation-driven differentiation strategy, the relatively weak employment development of Eastern rural districts might be explained by a lack of comparable long-term experiences and the related need to focus on the exploitation of basic and general resources and, accordingly, on the efficiency-based strategy of cost leadership. Originality/value: This study offers an in-depth empirical analysis of how the competitive share effect, i.e. region-specific resources beyond industry structure, contributes to regional employment development. The analysis reveals that quantitative differences in rural employment development are closely related to qualitatively different levels of input factors and different regimes of competitiveness.
KW - East Germany
KW - Employment development
KW - Rural regions
KW - Shift-share regression
KW - Structural change
KW - West Germany
UR - http://www.scopus.com/inward/record.url?scp=85146313735&partnerID=8YFLogxK
U2 - 10.1108/CR-09-2022-0130
DO - 10.1108/CR-09-2022-0130
M3 - Article
AN - SCOPUS:85146313735
VL - 33
SP - 1
EP - 21
JO - Competitiveness Review
JF - Competitiveness Review
SN - 1059-5422
IS - 7
ER -