Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States

Different regional economic theories come to different conclusions with regard to the impact of (state) policies on the economic prosperity of regions. This article provides empirical evidence that determinants like geography, urbanization, industrial mix and social capital explain 68 percent of the...

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Main Authors: Thomas Döring, Lorenz Blume
Format: Article
Language:English
Published: University of Ljubljana Press (Založba Univerze v Ljubljani) 2013-03-01
Series:Central European Public Administration Review
Subjects:
Online Access:https://journals.uni-lj.si/CEPAR/article/view/20377
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author Thomas Döring
Lorenz Blume
author_facet Thomas Döring
Lorenz Blume
author_sort Thomas Döring
collection DOAJ
description Different regional economic theories come to different conclusions with regard to the impact of (state) policies on the economic prosperity of regions. This article provides empirical evidence that determinants like geography, urbanization, industrial mix and social capital explain 68 percent of the variation in GDP per worker among West German regions. One element that all these factors have in common is that they cannot, at least in the short run, be influenced by state policies. Determinants like infrastructure and human capital, both of which can be influenced by state policies, only account for another 11 percent of the variation in GDP.
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institution Kabale University
issn 2591-2240
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publishDate 2013-03-01
publisher University of Ljubljana Press (Založba Univerze v Ljubljani)
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spelling doaj-art-339b0e1942f543f18a0e0bd09af77b1d2025-01-22T10:55:03ZengUniversity of Ljubljana Press (Založba Univerze v Ljubljani)Central European Public Administration Review2591-22402591-22592013-03-0111110.17573/ipar.2013.1.a02Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German StatesThomas Döring0Lorenz Blume1University of Applied Sciences, Faculty of Social and Cultural Sciences, DarmstadtPhilipps-University of Marburg, Faculty of Economics and Business Administration, MarburgDifferent regional economic theories come to different conclusions with regard to the impact of (state) policies on the economic prosperity of regions. This article provides empirical evidence that determinants like geography, urbanization, industrial mix and social capital explain 68 percent of the variation in GDP per worker among West German regions. One element that all these factors have in common is that they cannot, at least in the short run, be influenced by state policies. Determinants like infrastructure and human capital, both of which can be influenced by state policies, only account for another 11 percent of the variation in GDP.https://journals.uni-lj.si/CEPAR/article/view/20377regional economic developmentstate policiesfiscal equalization scheme
spellingShingle Thomas Döring
Lorenz Blume
Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
Central European Public Administration Review
regional economic development
state policies
fiscal equalization scheme
title Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
title_full Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
title_fullStr Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
title_full_unstemmed Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
title_short Differences in Regional Economic Prosperity: Do State Policies Matter? – An Empirical Investigation of Data from the German States
title_sort differences in regional economic prosperity do state policies matter an empirical investigation of data from the german states
topic regional economic development
state policies
fiscal equalization scheme
url https://journals.uni-lj.si/CEPAR/article/view/20377
work_keys_str_mv AT thomasdoring differencesinregionaleconomicprosperitydostatepoliciesmatteranempiricalinvestigationofdatafromthegermanstates
AT lorenzblume differencesinregionaleconomicprosperitydostatepoliciesmatteranempiricalinvestigationofdatafromthegermanstates