Which German Länder compete successfully in attracting investors? - Sound budgetary policies pay off
ifo Institut für Wirtschaftsforschung, München, 2005
ifo Schnelldienst, 2005, 58, Nr. 16, 07-12
![](https://www.ifo.de/DocImg/ifosd_2005_16_2.jpg?c=1689237138)
The German Länder themselves can influence to a considerable extent how dynamically the economy and employment will grow in particular regions and how stable the security systems are. In the competition for mobile factors of production - skilled workers and investments - the Länder have had differing success. Prof. Norbert Berthold and Holger Fricke, University of Würzburg, document this in a current study, whose results are summarised here. Success in the areas "employment", "income" and "security" is examined and converted into a success index that expresses how attractive the Länder are in site competition. Then the authors examine what factors are responsible for the respective successes or failures. A good ranking depends largely on financial resources. The study demonstrates the great influence and benefits of sound budgetary policies.