caa a22 4500 475838823 CHVBK 20180406123856.0 cr unu---uuuuu 170329e20000701xx s 000 0 eng 10.1007/s001689900008 doi (NATIONALLICENCE)springer-10.1007/s001689900008 Regional investment incentives in Germany: Impacts on factor demand and growth [Elektronische Daten] [Hans Joachim Schalk, Gerhard Untiedt] Abstract.: The aim of this paper is to analyse the effects of regional investment incentives - a main component of regional policy in West Germany - on regional factor demand (investment and labor), growth and convergence of per capita income for the period 1978 to 1989. Demand for investment and labor arise from a model of cost minimization at given output with a putty-clay production function. The production function allows for regional technical efficiency. To model the output effect on factor demand an auxiliary output function is specified. In estimating the functions attention is given to the short-run dynamics and the long-run behaviour of factor demand by error-correction models. The empirical long-run relationships are then used to simulate the effects of regional investment incentives. In contrast to most studies for other countries the empirical results provide evidence that regional policy in Germany induces not only additional investment but also creates positive employment effects. However, the effects of regional investment incentives on growth and convergence of labor productivity are negligible. Springer-Verlag Berlin Heidelberg, 2000 Schalk Hans Joachim ifo Institute for Economic Research, Poschingerstr. 5, 81679 Munich, Germany (e-mail: schalk@ifo.de), DE aut Untiedt Gerhard Gesellschaft für ökonomische Regionalanalysen (GEFRA), Salzmannstr. 152, 48159 Münster, Germany (e-mail: untiedt@muenster.de), DE aut https://doi.org/10.1007/s001689900008 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s001689900008 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Schalk Hans Joachim ifo Institute for Economic Research, Poschingerstr. 5, 81679 Munich, Germany (e-mail: schalk@ifo.de), DE aut NATIONALLICENCE 700 1- Untiedt Gerhard Gesellschaft für ökonomische Regionalanalysen (GEFRA), Salzmannstr. 152, 48159 Münster, Germany (e-mail: untiedt@muenster.de), DE aut Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer