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Foreign Production (38) Geographical Distribution (39) A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Lagnevik, Magnus et al. Working Paper — Digitized Version The Baltic connection: industrial structure in and intergration between Southern Sweden and Nothern Germany Kiel Working Paper, No. 520 Provided in Cooperation with: Kiel Institute for the World Economy (IfW) Suggested Citation: Lagnevik, Magnus et al. (1992) : The Baltic connection: industrial structure in and intergration between Southern Sweden and Nothern Germany, Kiel Working Paper, No. 520, Kiel Institute of World Economics (IfW), Kiel This Version is available at: http://hdl.handle.net/10419/608 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Kieler Arbeitspapiere Kiel Working Papers Working Paper No. 520 The/Baltic Connection Industrial Structure in and Integration between Southern Sweden and Northern Germany by Magnus Lagnevik, Konrad Lammers et al. July 1992 Institutfur Weltwirtschaft an der Universitat Kiel The Kiel Institute of World Economics ISSN 0342-0787 Kiel Institute of World Economics Diistembrooker Weg 120, D-2300 Kiel Working Paper No. 520 The/Baltic Connection Industrial Structure in and Integration between Southern Sweden and Northern Germany by Magnus Lagnevik, Konrad Lammers et al. July 1992 Authors: Kristina Genell, Claus-Friedrich Laaser, Magnus Lagnevik, Konrad Lammers, Goran Lundin, Karl-Johan Lundqvist, Lars-Olof Olander The authors themselves, not the Kiel Institute of World Economics, are responsible for the contents and distribution of Kiel Working Papers. Since the series involves manuscripts in a preliminary form, interested readers are requested to direct criticisms and suggestions directly to the authors and to clear any quotations with them. Prefatory Note This study is the outcome of a common research project between the Institute for Economic Research at the school of Economics and Management in Lund and the Kiel Institute of World Economics. The authors would like to thank Hans Medin for his initiatives and enthusiasm in the creation of cooperation between the two Institutes through the German-Swedish Research Association. Contents Part 1. Background, Purpose and Problem (1) Part 2. Structure and Networks - Southern Sweden (5) The Southern Swedish Region (6) Manufacturing Industry in Southern Sweden: Structural Changes 1970- 1987 (10) Statistical Basis (11) Analytical Method: Sectors and Sub Sectors (11) Structure and Change on a National Level (14) Southern Sweden (16) Notes on the Empirical Material (22) Survey I: "Export and International Specialization" (22) Survey II: "Supplier Patterns and International Relations" (23) Export Intensities and Geographical Distribution (24) R&D Share, Concentration of Production and Ownership of Industrial Firms in a Regional Perspective (25) Export Intensities (29) The "Home Base" and Its Importance (31) Geographical Distribution (35) Foreign Production (38) Geographical Distribution (39) The Purchasing Patterns and Purchasing Networks (41) Long Term Buyer Relations (42) Local and Regional Supplier Networks (43) Purchasing Networks with Germany, Europe and the Rest of the World (43) Expected Changes in Volume Purchased Abroad (44) Company Actions and Plans as an Answer to Environmental Changes (45) The European Community and the Single Market Actions and Plans (46) Actions and Plans concerning the Economic and Political Developments in Eastern Europe (47) Expectations and Preparations for the Future (54) The Regional Mobilization (54) The Corporate Behaviour (55) No Expected Changes in Import and Export (58) The Development of Competitiveness - an Emerging Pattern (59) Part 3. Structure and Networks - Schleswig-Holstein (65) Position and Performance of Schleswig-Holstein's Economy 1970-1990 (66) Conditions for Economic Activities in Schleswig-Holstein (75) Locational Factors (76) Institutional Conditions (82) Main Lines of Industrial Structure and Structural Change in Schleswig-Holstein in the Seventies and Eighties (84) Structural Change in Schleswig-Holstein (89) Networks: Export Structures and Direct-Investment Relations (99) Export Structures by Categories of Products (99) Export Structures by Regions (101) Exports to Sweden (102) Direct Investment Relations (104) Effects of the Completion of the European Single Market of the Economy of Schleswig-Holstein (110) Methodical Considerations (110) "Sectoral Affectedness of Schleswig-Holstein's Manufacturing Sector (111) "Regional Competitiveness" of Schleswig-Holstein (113) Potential Effects of the ESM-Program in the Judgement of Enterprises from Schleswig-Holstein (114) Part 4. Comparative Analysis - Southern Sweden and Schleswig-Holstein (123) Economic Performance and Structural Change (124) Problem Sectors and Prosperous Sectors (129) Interaction and Internationalization (134) Effects of the Completion of the European Single Market (138) Baltic Cooperation - Based on what? (142) References (149) Appendix 1: Ohlsson and Vinell Classification of Manufacturing Industry (155) Appendix 2: "ESM Affectedness Classification" of Swedish Manufacturing Industries (159) Appendix 3: Classification Schemes Provided by Ohlsson and Vinell, and Klodt and Sectoral Affectedness of Branches by the ESM-Program According to Buigues, Ilzkowitz and Lebrun (163) Appendix 4: Results of the 1992 Questionnaire of the Schleswig-Holstein Chambers of Industry and Commerce Among Enterprises in Schleswig-Holstein Concerning the Potential Results of the European Single Market, Results for Manufacturing Enterprises (167) Parti Many people and politicians see the Baltic rim as a region with promising eco- nomic prospects. Even the picture of a new "Hanse" region is drawn. It is true that the political upheaval in Eastern Europe has changed the situation in the Baltic rim substantially: Poland, Russia and the Baltic states are on the way to becoming market economies which will presumably bring more scope for trade with - not only, but especially - the other countries around the Baltic Sea. Changes in the economic environment are not limited to the former central planned economies. At the end "of 1992 the common internal market between EC member countries should be completed. The EC and the EFTA countries have agreed that the same internal market conditions will mainly be valid for EFTA countries. Furthermore the EFTA countries Sweden and Finland have applied for membership of the EC. All this means that the countries in the Baltic region will presumably face far reaching changes in their established trade and other economic relations. Undoubtedly the changing economic environment will lead to new patterns of trade, cooperation and competition around the Baltic. All regions will not be affected in same manner and the reactions in the regions may be different. In this study we consider two regions of the Baltic rim - Southern Sweden and Schleswig-Holstein which is the most northern German Bundesland. Our attention is centered on these regions because Sweden and Germany are the leading export countries in the Baltic rim belonging to different economic areas, the EFTA and the EC. Southern Sweden and Schleswig-Holstein are border- regions between these economic areas and more or less peripheral regions to their respective national centres (figure 1). Therefore one can expect that the effects of integration of the EFTA and EC should be more distinctly noticeable in Southern Sweden and Schleswig-Holstein.1 Besides the effects resulting from integration in Europe the regions are of course confronted - as any region which is involved in the international division of labour - by the challenge of increasing global competition. In our study we consider the economic performance and structure of the regions and we ask how the regions have managed structural change in the seventies and eighties. Furthermore we investigate the economic networks between the regions 1 From a point of view which gives priority to geographic distance Mecklenburg-Vorpommern is the German region nearest to Sweden. But investigating economic structure and performance in the past and existing trade relations assessing integration effects for Mecklenburg-Vorpommem does not seem very promising. In the former GDR all determinants of economic development were the result of planning decisions influenced by the idea of intra-Comecon socialistic division of labour. The situation has substantially changed by the German unification indeed, but the period since 1990
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