TY - RPRT AU - Dauth, Wolfgang AU - Suedekum, Jens TI - Globalization and Local Profiles of Economic Growth and Industrial Change PY - 2014/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 8161 UR - https://www.iza.org/index.php/publications/dp8161 AB - We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend– also known as Petty's law – is not uniform across space, however. Some regions exhibit it at an even accelerated pace, while other regions have reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with "protrend", "anti-trend" or "featureless" growth. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the regional profiles of growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors. KW - trade exposure KW - local industry compositions KW - structural change KW - local employment growth ER -