Engineering
8 years ago

Local productivity boosts regional growth in German manufacturing industries.

RePEc: Research Papers in Economics
Externalities, location, and regional development: Evidence from German district data
Thiess Büttner

Paper Summary

Local productivity externalities are important for regional growth. A study using German district data found that industries benefit from being located near each other, leading to growth. The more manufacturing activities in an area, the better for growth. This shows that industries in close proximity help each other grow over time.

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