Spatial concentration of industry in Europe: Evidence for Germany

Zamorina, Anastasiia

doi:1429-7132

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Title: Spatial concentration of industry in Europe: Evidence for Germany

Abstract:

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.

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