Structural Change in Rural Areas – Company Biographies
Project period: September 2021 - October 2022
Research Areas:
Tasks
The creation of equal living conditions and, derived from this, the reduction of regional differences in economic strength, are an important goal of the economic policy of the federal and state governments. An important driver of differences between urban and rural areas is the regional corporate structure. So-called structurally weak regions are almost invariably characterized by low business density and a weak labor market. By contrast, prosperous regions with a high rate of inward migration can usually point to a dynamic labor market and many efficient companies. A successful structural policy must therefore always ask how it can succeed in strengthening the structurally weak regions in company settlement and competitiveness.
Against this background, the aim of the study "Structural Change in Rural Areas - Enterprise Biographies" is to identify which factors are most important for the regionally heterogeneous development of start-up activity in Germany. These factors could then serve as clues for deriving policy recommendations on how to economically strengthen rural and sparsely populated regions.
Methods
The micro data of the BHP are aggregated into four spatial types according to the specifications of the BBSR. The aggregated data are used to visualize the number of establishments, start-ups, and closures in the various spatial types. Many different characteristics such as economic sector or size of the businesses are also considered. Furthermore, a survival analysis and an examination of growth and shrinkage processes are carried out. The aim is to use panel regressions to find explanations for the observed differences between the different types of regions.
Using company data from infas360 GmbH, the formation and closure of companies is comprehensively examined and presented disaggregated by different sectors and regional units. In addition, machine learning methods are used to find those regional characteristics that best explain spatial differences in start-up activity.
Data and Other Sources
Business History Panel (BHP) of the Institute for Employment Research of the German Federal Employment Agency (IAB), company data from infas360 GmbH, and other data from official statistics at the district level.
