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How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany
Author(s) -
Wardenburg Sven,
Brenner Thomas
Publication year - 2020
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12500
Subject(s) - lagging , german , economics , autoregressive model , estimation , equity (law) , panel data , quality (philosophy) , demographic economics , econometrics , geography , political science , medicine , management , archaeology , pathology , law , philosophy , epistemology
Peripheral regions commonly appear to be less attractive to live in and policymakers all over the world are applying various measures to make them more attractive. This paper analyzes the effects of two very different measures: The German municipal fiscal equalization scheme and the German structural funds for economically weak areas (GRW). It focusses on the impact on perceived quality of life, measured through interregional migration between German labor market regions. Using a spatial vector autoregressive panel model, we find evidence that equalization transfers have a significant positive impact on regional net migration and contribute to the aim of regional equity. These effects are especially found for regions with low endogenous fiscal capacities. GRW funding reveals no significant effects on net migration rates in total, but short‐term effects in rural regions.