Politicians' opinions on rivals in the competition for firms: An empirical analysis of reference points near a border
Studies of spatial policy interdependence in (local) public policies usually concentrate on the relations between jurisdictions within a single analysed region, and disregard possible extra-regional effects. This paper evaluates the validity of such restriction by studying German local politicians' assessments of their jurisdictions' main competitors in the struggle to attract firms. We find that location near a border significantly undermines politicians' perception that the fiercest competitive pressure derives from jurisdictions within their own state. This effect sets in about 20km (12.5km) from a national (international) border. We also confirm that intranational borders are perceived as much less constraining for firms than international ones, even in a highly integrated area such as the European Union. Overall, these results indicate that nearest municipalities perceive each other as competitors regardless of the state or country where they are located. The practical implications of these findings for future studies on spatial policy interdependence are discussed.
Year of publication: |
2011
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Authors: | Geys, Benny ; Osterloh, Steffen |
Publisher: |
Mannheim : Zentrum für Europäische Wirtschaftsforschung (ZEW) |
Subject: | government interaction | competition | border effects | policy interdependence |
Saved in:
freely available
Series: | ZEW Discussion Papers ; 11-020 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 654670315 [GVK] hdl:10419/44984 [Handle] RePEc:zbw:zewdip:11020 [RePEc] |
Classification: | D24 - Production; Capital and Total Factor Productivity; Capacity ; D60 - Welfare Economics. General ; H71 - State and Local Taxation, Subsidies, and Revenue ; H72 - State and Local Budget and Expenditures |
Source: |
Persistent link: https://www.econbiz.de/10010304458