Size is not everything – The efficiency of municipal service provision in Saxony-Anhalt
Peter Haug, Annette Illy
Wirtschaft im Wandel,
No. 10,
2011
Abstract
The proponents of municipal area reforms – e.g. the recently completed reform in Saxony-Anhalt – expect that municipal amalgamations or centralized organizational forms save costs or increase the efficiency of local public service provision. This article examines the potential efficiency deficits of Saxony-Anhalt´s fragmented municipal structures on the eve of the crucial phase of the municipal reform. The results of a two-step DEA bootstrap procedure show that decentralized municipalities (“Verwaltungsgemeinschaften”) do not have to be significantly less efficient than centralized municipalities (“Einheitsgemeinden”). Furthermore, the results of the scale efficiency analysis suggest that the majority of Saxony-Anhalt´s communities already had an approximately efficient “firm size” – if the aggregated level of the municipal associations is examined. The relationship between scale efficiency and population is U-shaped. On the one hand, the results do not support the preservation of micro-municipalities or the formation of municipal associations with more than ten members. On the other hand, the results provide also no evidence for the necessity to reduce the number of towns and municipalities in Saxony-Anhalt from 1118 in 2004 to currently 219 – even if the looming population decline is taken into account.
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Selektivität, soziale Bindung und räumliche Mobilität - Eine Analyse der Rückkehrpräferenz nach Ostdeutschland
Lutz Schneider, Alexander Kubis, D. Wiest
Zeitschrift für Wirtschaftsgeographie,
No. -1,
2011
Abstract
Selectivity, social ties and spatial mobility. An analysis of preferences for return migration to East Germany. In the public debate, brain drain from East Germany is supposed to be the most critical trend regarding the development and catching up of the New Länder. Therefore, potential for in- and re-migration has attracted much attention at least in the political context. Our contribution analyses the remigration potential on basis of data from a DFG research project focussing on the re-migration intentions of people formerly emigrated from Saxony-Anhalt. The analysis concentrates on the following aspects: the effect of job market success after emigration; the impact of social ties to the origin and the host region and on the selectivity of re-migration preferences. The econometric results confirm several expected effects: On the one hand an individual’s job market success reduces the intention to return. Likewise, the re-migration preference increases for people whose expectations were disappointed. On the other hand, the relevance of social ties to the origin region for re-migration dispositions is confirmed by the estimations. Yet, regarding selectivity of re-migration preferences in terms of human capital econometric results are somewhat ambiguous.
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Upturn in Saxony-Anhalt in between structural Barriers
Udo Ludwig, Brigitte Loose
Wirtschaft im Wandel,
No. 7,
2011
Abstract
The gross domestic product of Saxony-Anhalt will increase by 2.6% in 2011. Due to structural reasons the growth is lower than in Germany. In Saxony-Anhalt the key growth driver, the engineering industry, are poorly represented. The previously strong food industry suffers under the pressure of rising commodity prices. The growth gap is explained also from a slowing dynamics in the industry later this year, what is already indicated in the intermediate goods sector, which is the most important part in Saxony-Anhalt´s industry. In addition, the dynamics of household demand for consumer goods and housing is weaker because of the sharp decline in population. Furthermore, the government sector slows in connection with the consolidation of public budgets. The growth gap compared to the average of the New Federal States in total also stems from the fact that the recovery in Saxony-Anhalt had progressed rapidly in the previous year.
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School Closures and Population Decline in Saxony-Anhalt
Walter Hyll, Lutz Schneider
Wirtschaft im Wandel,
No. 6,
2011
Abstract
In rural areas school closures are often linked to a decline in population. Do school closures stimulate enhanced emigration? This paper analyses whether family migration is affected by the existence of primary schools. We conduct an empirical study for the East German province Saxony-Anhalt for the period 1991 to 2008. We find that primary schools significantly affect migration behaviour. After school closure municipalities experience a decrease in in-migration. Unexpectedly, controlling for cohort size, unobserved heterogeneity as well as for neighbourhood effects yields higher out-migration prior to school closure. Because the in-migration and the out-migration are of the same magnitude, in sum school closures have no observable impact on net-migration.
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Metropolitan Area „Central Germany“: How Strong are the Commuting Flows between the Cities?
Albrecht Kauffmann
Wirtschaft im Wandel,
No. 2,
2011
Abstract
The metropolitan area „Central Germany“ is an institutional agreement on co-operation between the bigger cities of the German Länder Saxonia, Saxony-Anhalt and Thuringia. It is one of now eleven “European Metropolitan Areas” acknowledged by the Conference of German Ministers for Spatial Planning. In the face of the multitude of cities and the large distances between the cities at the fringe and the geographical centre of the metropolitan area “Central Germany” should be regarded as a very special case. Another peculiarity is that the hinterland of the metropolitan area has not yet been delineated. The paper analyses the networking interrelations between the eleven cities on the basis of commuting flows. Additionally, proposals for the delimitation of this metropolitan area as a polycentric functional urban area are suggested for the first time. The investigation yields that network connectivity between the cities that have shaped the former metropolitan area “Halle/Leipzig-Saxonian Triangle”, as well as the Thuringian cities is much more intensive than the commuting flows between these subareas that are well connected from history. As a functional area, the metropolitan area “Central Germany” would have a very large hinterland, but its population density would be rather small, and it would interact only with the nearest regional centres. One can conclude that the preconditions for successful cooperation are better for adjacent cities which collaboration has already a long tradition.
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Selectivity, Social Ties and Spatial Mobility – An Analysis of Preferences for Return Migration
Lutz Schneider, Alexander Kubis, D. Wiest
Abstract
In the public debate, the brain drain from East Germany is supposed to be the most critical trend regarding the development and catching-up of the New Länder. Therefore, potential for in- and re-migration has attracted much attention at least in the political context. Our contribution analyses the re-migration potential on the basis of data from a DFG research project focussing on the re-migration intentions of people formerly emigrated from Saxony-Anhalt. The analysis concentrates on the following aspects: the effect of job market success after emigration; the impact of social ties to the origin and the host region and on the selectivity of
re-migration preferences. The econometric results confirm several expected effects: On the one hand an individual’s job market success reduces the intention to return. Likewise, the re-migration preference increases for people whose expectations were disappointed. On the other hand, the relevance of social ties to the origin region for re-migration dispositions is confirmed by the estimations. Yet, regarding selectivity of re-migration preferences in terms of human capital econometric results are somewhat ambiguous.
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Business Networks in the Leipzig, Dresden, Chemnitz and Halle Regions: Do Member Firms Locate in Spatial Proximity?
Gerhard Heimpold
Wirtschaft im Wandel,
No. 4,
2010
Abstract
The business landscape in East Germany mainly consists of small and medium-sized firms. This in mind, business networks may contribute to an improvement of the economic performance of firms which collaborate in business networks. For successful networking a mix of network members being locally concentrated on the one side and of partners from distant regions, especially from abroad, on the other side, is important. In regional economics, this duality is highlighted for two reasons: personal contacts of partners which are located in spatial proximity to each other may ease the transfer of tacit knowledge. The flow of tacit knowledge can be regarded as a factor which enhances innovation processes. However, the inclusion of partners from abroad is important, too. It facilitates access to the most advanced knowledge and technologies worldwide. The academic debate on networking regards a one-sided orientation on the local dimension of networking as risky due to possible lock-in effects. The empirical findings for 93 business networks existing in the regions of Leipzig, Dresden, Chemnitz and Halle, which are located in the southern part of East Germany, reveal a great proportion of network members concentrated locally: On average, this is the case with more than 50% of the network members. 10% of members are located in the other three city regions mentioned. More than one third of firms are located outside, in other German regions, of which around the half in the states of Saxony and Saxony-Anhalt. A minority of 2% is located abroad. However, for the transfer of externally existing knowledge other network members may be relevant, too. To illustrate: More than four fifths of the networks under investigation include public research units (universities etc.) which usually play an important role when it comes to an inter-regional and international knowledge transfer.
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Concerning the development of the debt level of the New Länder since the German unification
Sabine Freye
Wirtschaft im Wandel,
20 Jahre Deutsche Einheit - Teil 2 -
2010
Abstract
During the 1990s, public indebtedness rose remarkably in all German political subdivisions. This development was particularly strong in the New Länder. At the beginning of the 1990s, they had low indebtedness rates. Today, 20 years later, the debt level of some New Länder lies over the average value of all Federal states. The background of this development is complex and depends also on the individual situation of each state. Generally, the rise of the debt level of the New Länder can be attributed to the 1990s’ estimation of a fast adjustment of the New Länder’s economic and financial power to that of the old Federal states. From today's point of view, this estimation was too optimistic. Furthermore, the New Länder have been affected differently by the transformation-conditioned structural change and the therefore arising difficulties with the necessary adjustment to the market.
In Saxony-Anhalt, which is characterised by the highest debt level of the New Länder, the collapse of the basic industry has led to high regional unemployment and to a substantial migration of the population. Still Saxony-Anhalt has countrywide the largest negative migration balance.
Regardless of these state-specific characteristics of the transformation process, there is a gradual change in the attitude towards existing debts and their handling, starting around the year 2000. So, the interest in budget consolidation increases constantly. This development was supported by the economic boom of the years 2006 and 2007. At present, the economic crisis puts the consolidation efforts of the states to the test.
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How to Make a City Attractive for Knowledge-Intensive Firms? – The Formation and Stagnation of Media Industry in the Old Industrial Region of Halle (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
The Regeneration of Image in Old Industrial Regions: Agents of Change and Changing Agents. Mönchengladbacher Schriften zur wirtschaftswissenschaftlichen Praxis, Bd. 22,
2009
Abstract
In many regions with development problems, which had – in the past – been the domain of traditional industries, policymakers are trying today to stimulate entrepreneurial activities in knowledge-intensive and creative industries. The question is whether this strategy could really be successful. This paper reports on a case-study for the region of Halle an der Saale, which is located in the state of Saxony-Anhalt (East Germany), where the strategy of policymakers has recently been the attempt to support firms from Media Industry (“MI”).
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Returning to East Germany: Labour Market Success Reduces Re-migration Potential
D. Wiest, Lutz Schneider, Alexander Kubis
Wirtschaft im Wandel,
No. 9,
2009
Abstract
In the public debate, the brain drain from East Germany is supposed to be the most critical trend regarding the development and catching-up of the New Länder. Therefore, potential for in- and re-migration has attracted much attention at least in the political context. Our contribution analyses the re-migration potential on the basis of data from a DFG research project focusing on the re-migration intentions of people formerly emigrated from Saxony-Anhalt. The analysis concentrates on two aspects: firstly on the effect of job market success after emigration; secondly on the impact of social ties in the origin and the host region on the re-migration potential. The econometric results confirm the expected effects: On the one hand, an individual’s job market success in the target region reduces the re-migration potential. Likewise, the re-migration potential increases for people whose former expectations were disappointed. On the other hand, the analysis shows the relevance of social ties to the region of origin for re-migration potential.
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