The process of European integration entails regional structural change thereby affecting the economic situation of regions and the objective of regional cohesion in Europe. As some kinds of specialization may be more favourable to regional income opportunities than others, there may be winning...

Several recent econometric investigations found externalities related to the density of economic activity to account for one fifth to one half of total regional variations in average labor productivity in the U.S. and big European countries, including Germany. The present paper shows for German...