Economic Growth of Agglomerations and Geographic Concentration of Industries: Evidence for Germany

This paper takes up a phenomenon in European geographical development: the simultaneity of regional economic convergence on the one hand and the continued spatial concentration of economic activities on the other. Overall, the disparities in productivity and income between regions in the European Union have diminished considerably in the last two decades. The poorest regions have caught up to a certain extent, while many of the relatively rich regions have grown at only below-average rates. However, a small group of particularly highperforming areas has developed contrary to this convergence trend and is moving further away from the rest (CHESIRE and MAGRINI, 2000).