-experimental characteristics. When Germany was divided after World War II, many firms in the machine tool industry fled the Soviet-occupied zone to … prevent expropriation. We show that the regional location decisions of these firms upon moving to western Germany were driven … evidence that these effects are due to increased competition for local resources …

formation: industry, location and change over time. The data is for West Germany and covers the 1983-97 period. Our analysis …

, with labor laws and household banking quality also playing important roles. Looking at the district-industry level, we find … extensive evidence of agglomeration economies among manufacturing industries. In particular, supportive incumbent industrial … evidence for the Chinitz effect where small local incumbent suppliers encourage entry. The importance of agglomeration …