Can Germany Stand Up to International Locational Competition?
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Can Germany Stand Up to International Locational Competition?
Editors: Winkelmann, Rainer | Zimmermann, Klaus F.
Applied Economics Quarterly. Supplements, Vol. 56
(2005)
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Abstract
Unternehmen konkurrieren um Kunden, während Regionen und Staaten um Unternehmen, um deren Arbeitsplätze und Steuerzahlungen konkurrieren. Bei der Standortwahl müssen die Unternehmen weder absatz- noch input-orientiert sein. Vielmehr können sie auch - als "footloose industries" - allein Lohnkostenvorteile nutzen. Für Hochlohn-Standorte wie Deutschland kommt es somit umso mehr darauf an, den Unternehmen attraktive Standorteigenschaften zu bieten.International und einschlägig ausgewiesene Wissenschaftler der Wirtschaftsforschungsinstitute CEPII (Paris), Institut der deutschen Wirtschaft (Köln), ifo Institut (München), Institut für Weltwirtschaft (Kiel) sowie HWWA (Hamburg) legen die Ergebnisse aktueller v.a. empirischer Studien vor, die u.a. aufzeigen, welche Standorteigenschaften für international orientierte Unternehmen von besonderer Bedeutung sind, in welche Richtung in Deutschland ein Programm zur Standortstärkung und zur Überwindung der Wachstumsschwäche zielen müsste, welche Auswirkungen Investitionen deutscher Firmen im Ausland auf die Beschäftigung in Deutschland haben.Enterprises compete for clients, whereas regions and states compete for enterprises, jobs and tax revenues. Enterprises selecting where to locate do not have to orient themselves towards markets or inputs: as "footloose industries"", they can simply move to where they find the lowest wages. For high-wage countries like Germany it is, thus, all the more important to offer enterprises attractive locational conditions.Internationally renowned economists from the research institutes CEPII (Paris), IW (Cologne), Ifo (Munich), IfW (Kiel) and HWWA (Hamburg) present results of recent, mainly empirical studies. They discuss the most important locational conditions for enterprises, the central objectives of a program to stimulate growth and improve Germany's attractiveness as a business location, and the net effects of outgoing investment on the German labour market.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Editorial | 5 | ||
| Contents | 7 | ||
| Lionel Fontagné and Thierry Mayer: Determinants of Location Choices by Multinational Firms: A Review of the Current State of Knowledge | 9 | ||
| Abstract | 9 | ||
| 1. Introduction | 9 | ||
| 2. Theory Background | 11 | ||
| 2.1 Market Access and Spatial Competition | 12 | ||
| 2.2 Agglomeration | 13 | ||
| 2.3 Production Costs | 13 | ||
| 2.4 Public Policy Measures | 14 | ||
| 2.5 Synthetic Framework | 14 | ||
| 3. Market Access and Spatial Competition: The Evidence | 16 | ||
| 3.1 The Two Faces of Market Access | 16 | ||
| 3.2 Japanese FDI in Europe | 17 | ||
| 3.3 Foreign Entries in Chinese Provinces | 19 | ||
| 3.4 German Firms Locating Abroad | 19 | ||
| 4. Production Costs and Location: The Evidence | 21 | ||
| 4.1 Employment Substitution between Parent and Foreign Affiliates | 21 | ||
| 4.2 Is Regulation Deterring Inward FDI? | 22 | ||
| 4.3 Social Dumping | 23 | ||
| 4.4 Environmental Dumping | 24 | ||
| 4.5 Gains to Cultural Proximity | 25 | ||
| 5. Public Policies and Location: The Evidence | 25 | ||
| 5.1 Corporate Taxes and Other Forms of Investment-promotion Policies | 26 | ||
| 5.2 FDI and Institutions | 28 | ||
| 6. Conclusion | 30 | ||
| References | 32 | ||
| Hans-Peter Klös and Rolf Kroker: Developing a Political Agenda for Sustainable Economic Growth in Germany | 35 | ||
| Abstract | 35 | ||
| 1. The Problem and the Design of the Paper | 35 | ||
| 2. Determinants of Economic Growth (Growth Drivers) | 37 | ||
| 3. Scenarios of Economic Growth in Germany up to 2024 | 41 | ||
| 4. From Stress to Reform | 45 | ||
| 5. The Political Economics of Reforms | 47 | ||
| 5.1 Reform Automatism: How Likely is Persisting Stagnation? | 48 | ||
| 5.2 Delaying Aspects: Are J-curve Effects Inevitable? | 48 | ||
| 5.3 Distributional Aspects: Does a Rising Tide Lift All Boats? | 49 | ||
| 6. Conclusion | 52 | ||
| References | 52 | ||
| Kilian Bizer: Developing a Political Agenda for Sustainable Economic Growth in Germany - Comment | 55 | ||
| Abstract | 55 | ||
| 1. Introduction | 55 | ||
| 2. Varieties of Growth Paths | 56 | ||
| 3. The Agenda 2010 | 57 | ||
| 4. Conclusion | 58 | ||
| Bibliography | 59 | ||
| Tobias Seidel: Welfare Effects of Capital Mobility with Rigid Wages | 61 | ||
| Abstract | 61 | ||
| 1. Introduction | 61 | ||
| 2. The Development of Capital Mobility | 63 | ||
| 3. Labour Market Institutions and Outcome | 64 | ||
| 4. The Model | 65 | ||
| 5. Integration with Flexible Wages | 67 | ||
| 6. Integration with Rigid Wages | 68 | ||
| 7. A Distorting Tax on Capital | 71 | ||
| 8. Conclusions and Policy Implications | 72 | ||
| Appendix | 73 | ||
| References | 74 | ||
| Carsten Eckel: Welfare Effects of Capital Mobility with Rigid Wages - Comment | 77 | ||
| References | 80 | ||
| Peter Egger, Tilmann Rave and Ursula Triebswetter: Environmental Standards and the Location of Foreign Direct Investment: Evidence for Germany | 83 | ||
| Abstract | 83 | ||
| 1. Introduction | 83 | ||
| 2. Specification of Environmental Variables and Measurement of Regulatory Stringency | 85 | ||
| 3. Theoretical Motivation of the Empirical Framework | 87 | ||
| 4. Data, Empirical Specification, and Econometric Results | 88 | ||
| 5. Conclusions | 99 | ||
| References | 100 | ||
| Michael Pfaffermayr: Environmental Standards and the Location of Foreign Direct Investment: Evidence for Germany - Comment | 103 | ||
| References | 104 | ||
| Henning Klodt: International Investment and Domestic Employment | 105 | ||
| Abstract | 105 | ||
| 1. Introduction | 105 | ||
| 2. Theories of International Investment | 106 | ||
| 3. Stylized Facts of International Investment | 107 | ||
| 4. Summary and Conclusions | 112 | ||
| References | 113 | ||
| Appendix | 115 | ||
| Sascha O. Becker: International Investment and Domestic Employment - Comment | 117 | ||
| 1. Introduction | 117 | ||
| 2. Econometric Studies on Home Labor Market Effects of Outward FDI | 118 | ||
| 3. Should We Worry about Outward FDI? | 119 | ||
| References | 120 | ||
| Christine Borrmann, Rolf Jungnickel and Dietmar Keller: Does FDI in Central and Eastern Europe Weaken Germany’s Position as a Business Location? | 123 | ||
| Abstract | 123 | ||
| 1. Introduction | 123 | ||
| 2. Pattern of German FDI in CEE Countries | 125 | ||
| 3. The (Ambiguous) Link between FDI and Location Quality | 128 | ||
| 4. Results of Former Studies | 131 | ||
| 5. Empirical Evidence | 135 | ||
| 5.1 Data Base and Methodological Approach | 135 | ||
| 5.2 Affiliate Production and Trade | 137 | ||
| 5.3 Affiliate Production and Employment in Germany – The Direct Link | 142 | ||
| 6. Summary and Conclusions | 144 | ||
| References | 146 | ||
| Annex | 148 | ||
| Wilfried Altzinger: Does FDI in Central and Eastern Europe Weaken Germany’s Position as a Business Location? - Comment | 151 | ||
| 1. Introduction | 151 | ||
| 2. Some Remarks on the BJK-Paper | 151 | ||
| 3. The Experiences of Austria’s FDI in CEE | 153 | ||
| 4. Conclusion | 156 | ||
| References | 156 | ||
| Participants | 159 |