Place of publishing:
Type of object:
Subject and Keywords:
The aim of the study is to evaluate the influence of agglomeration effects on corporate performance in Germany. The assessment carried out by investigating the effects of localization and urbanization. For this reason, the work was presented to the theoretical basis; it formulated the problem, methodology of the research and analyzed the influence of various factors on the number of employees in leading industries of Germany. We use the Panel data, a large-scale German establishment survey covering around 3477 companies of 9 industries located in 83 cities (14 lands). The study covers the period 2007 – 2014 years. The paper presents a linear model and two nonlinear models – the model with the addition of the square of companies` age and the model using the natural logarithm of the number of employees. The best model was chosen by using Akaike information criterion (AIC) and Schwarz (BIC), i.e. the linear model. The study found that localization effects have a positive impact on the number of employees, while the effects of urbanization – negative. In addition, it most strongly depends on the number of employees by region and industry. In the largest regions there is the largest population and respectively, the number of workers in it, so the agglomeration effects in the populous region is higher than in the other regions. The age of the company has a positive effect on the company’s number of employees: with an increase in the age of 1 year, the number of employees is increased by 21 people.
1. Anastassova L., 2006. Productivity differences and agglomeration across districts of Great Britain. CERGE-EI Working Paper, vol. 289.
2. Arbeitsmarkt https://www.destatis.de/DE/ZahlenFakten/Indikatoren/LangeReihen/Arbeitsmarkt/lrerw013.html [1 May 2016].
3. Artis M., Curran D., Sensier M. 2011. Investigating agglomeration economies in a panel of European cities and regions. SERC Discussion Papers, SERCDP0078. Spatial Economics Research Centre, London: London School of Economics and Political Science.
4. Baldwin J., Brown M., Rigby D., 2010. Agglomeration economies: micro data panel estimates from Canadian manufacturing. Journal of Regional Science, vol. 50(5), pp. 915-934.
5. Blien U., Suedekum J., Wolf K., 2006. Local employment growth in West Germany: A dynamic panel approach. Labour Economics, vol. 13(4), pp. 445-458.
6. Campante F. R., Do Q. A., 2009. Centered Index of Spatial Concentration: Expected Influence Approach and Application to Population and Capital Cities, http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.184.9110 [1 September 2016].
7. Ciccone A., 2002. Agglomeration Effects in Europe. European Economic Review, vol. 46 (2), pp. 213-227.
8. Ciccone A., Hall R., 1996. Productivity and the Density of Economic Activity. American Economic Review, vol. 86, pp. 54-70.
9. Combes P., 2000. Marshall-Arrow-Romer Externalities and City Growth. Journal of Urban Economics. vol. 47, pp. 329-355.
10. Davi M., Lopez-Bazo E., Barbaccia I., 2009. Measurement of Agglomeration and Spatial Effects. DE Statis: Statistisches Bundesamt, https://www.destatis.de/DE/Startseite.html [1 September 2016].
11. Duranton G., Overman H., 2005. Testing for Localization Using MicroGeographic Data. Review of Economic Studies, vol. 72, pp. 1077–1106.
12. Eckey H. F., Kosfeld R., Muraro N., 2009. Effects of population development on the economic level of the regions in Germany. Jahrbuch für Wirtschaftswissenschaften/Review of Economics, pp. 204-226.
13. Ellison G., Glaeser E., 1994. Geographical Concentration in U.S. Manufacturing Industries: A Dartboard Approach. Journal of Political Economy, vol. 105(5), pp. 889–927.
14. Ellison G., Glaeser E. L., 1999. The geographic concentration of industry: does natural advantage explain agglomeration? The American Economic Review, vol. 89(2), pp. 311-316.
15. Fafchamps M., 2004. Manufacturing Growth and Agglomeration Effects. CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford, vol. 204(33).
16. Fafchamps M., El Hamine S., 2004. Firm Productivity, Wages, and Agglomeration Effects. CSAE Universityof Oxford.
17. Fuchs M., 2011. The determinants of local employment dynamics in Western Germany. Empirical Economics, vol. 40(1), pp. 177-203.
18. Furtuna TF, Reveiu A., Dardala M., Kanala R., 2013. Analysing the Spatial Concentration of Economic Activities: A Case Study of Energy Industry in Romania. Economic Computation And Economic Cybernetics Studies And Research, vol. 47(4).
19. Gallo L., Dall'Erba S., 2007. The impact of EU regional support on growth and employment. Czech Journal of Economics and Finance, vol. 57(7), pp. 325-340.
20. Gao T., 2004. Regional industrial growth: evidence from Chinese industries. Regional Science and Urban Economics, vol. 34(1), pp. 101-124.
21. Glaeser E. L., Kahn M. E., 2010. The greenness of cities: carbon dioxide emissions and urban development. Journal of urban economics, vol. 67(3), pp. 404-418.
22. Glaeser E., Kallal H., Scheinkman J., Shleifer A., 1992. Growth in cities. Journal of Political Economy. vol. 100(6), pp. 1126-1152.
23. Gordon I. R., McCann P., 2000. Industrial clusters: complexes, agglomeration and/or social networks? Urban studies, vol. 37(3), pp. 513-532.
24. Jacobs J., 1969. The Economy of Cities, New York: Random House.
25. Jaffe A. B., Trajtenberg M., Henderson R., 1993. Geographic localization of knowledge spillovers as evidenced by patent citations. The Quarterly journal of Economics, pp. 577-598.
26. Kominers S. D., 2008. Measuring agglomeration. Harvard Urban and Social Economics Seminar http://www.scottkom.com/articles/measure_agglomeration.pdf [1 September 2016].
27. Krugman P., 1991. Geography and trade. London: The MIT Press.
28. Kutsenko E., 2012. Path Dependence in Spatial Distribution of Economic Activity: Bad News for Empiric Research of Agglomeration Effects. Institute for Statistical Studies and Economics of Knowledge, Moscow: National Research University "Higher School of Economics".
29. Marshall A., 1890. Principles of Economics. London: Macmillan.
30. Mori T., Nishikimi K., Smith T. A, 2005. Divergence Statistic for Industrial Localization. The Review of Economics and Statistics, MIT Press, vol. 87(4), pp. 635-651.
31. Palan N., 2010. Measurement of Specialization The Choice of Indices. FIW working paper, 2010, vol. 62.
32. Rosenfeld M. T. W., Franz P., Heimpold G., 2005. The Pattern of Spatially Concentrated Industries in East Germany-A Contribution to the Discussion on Economic" Clusters" [in:] Proceedings of the International Conference on Regional Growth Agendas, Aalborg, Denmark.
33. Rysman M., Greenstein S., 2005. Testing for Agglomeration and Dispersion. Economics Letters, vol. 86, pp. 405-411.
34. Statistisches Jahrbuch Deutschland und Internationales. 2012, Statistisches Bundesamt https://www.destatis.de/DE/Publikationen/StatistischesJahrbuch/StatistischesJahrbuch2012.pdf?__blob=publicationFile [1 September 2016].
35. Vorobyev P., Kislyak N., Davidson N., 2014. Industrial diversity and concentration in Russian cities: the impact on economic efficiency. Ural Federal University. Economics and management, vol. 6, pp. 4-18.
36. Wennberg K., Lindqvist G., 2010. The effect of clusters on the survival and performance of new firms. Small Business Economics, vol. 34(3), pp. 221-241.
37. Weterings A., Marsili O., 2015. Spatial concentration of industries and new firm exits: Does this relationship differ between exits by closure and by M&A? Regional Studies, vol. 49(1), pp. 44-58.