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Christian Oberst / Michael Voigtländer IW-Report No. 20 8. May 2020 An Empirical Aanalysis of the Development of German Circles: Regions in Germany on the Rise - Go East!

Regional development in Germany is widely discussed, but mainly focuses on less developed regions. As an alternative the focus in this study is on rising and catch-up regions, thus regions that have developed above average from a below-average starting level.

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Regions in Germany on the Rise - Go East!
Christian Oberst / Michael Voigtländer IW-Report No. 20 8. May 2020

An Empirical Aanalysis of the Development of German Circles: Regions in Germany on the Rise - Go East!

IW-Report

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Regional development in Germany is widely discussed, but mainly focuses on less developed regions. As an alternative the focus in this study is on rising and catch-up regions, thus regions that have developed above average from a below-average starting level.

In the convergence analysis the following location factors are considered: unemployment rate, purchasing power, average age, broadband expansion, population density, private households and municipal debt. The convergence analysis is conducted on two difference scales (logarithmical and Z-standardized).  
 
In this way twelve catch-up and rising regions are identified, with the most explicit being the planning regions Havelland-Fläming, Prignitz-Oberhavel (both in Brandenburg) Western Saxony and Central Thuringia (all in eastern federal states). In addition, so-called rising and catch-up local districts are identified. These are districts that have developed very dynamically but are in only averagely or even below-average performing planning regions. Here too, eastern districts are overrepresented, most prominent are Chemnitz, Märkisch-Oderland and Dessau-Roßlau, but we also find prominent examples in the south-west with Primasens and Nürnberg.  
 
Overall, many eastern regions Germany show a very promising development, especially with regard to the labour market. However, there are also eastern regions that are identified as less developing regions. Thus, regional development in eastern Germany is becoming more differentiated, whereby the increasingly strong economic centers could in the long-term spill-over to more distant surrounding regions (as we see it already for Berlin and Brandenburg).
 
The corona crisis may even support this general convergence process, since the employment share in particularly vulnerable economic sectors seems particularly high in above-average developed regions in southern Germany and is rather inconspicuous in eastern regions. 

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Regions in Germany on the Rise - Go East!
Christian Oberst / Michael Voigtländer IW-Report No. 20 8. May 2020

Christian Oberst / Michael Voigtländer: Aufsteigerregionen in Deutschland - Go East! Eine empirische Analyse der Entwicklung deutscher Kreise

IW-Report

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Pekka Sagner / Michael Voigtländer IW-Trends No. 3 20. August 2021

How the Berlin Rent Cap Affected Private Landlords

The effects of the Berlin rent cap on the city’s housing market were wide-reaching, with the supply of rental accommodation falling by more than half while the cap was in force.

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