Industrial mobility and public policy

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The debate on industrial mobility and its impact on local resource income has prompted an examination of optimal public policy. Viewing locations as possessing a stock of local resources, particularly labor, and local policymakers as aiming for high local income offers a realistic perspective on rent-shifting policies in the context of industrial mobility. A key focus is on inter-industry mobility differentials and their implications for public policy. When discussing local resources, it becomes evident that the growth of a mobile industry in a region can draw from local resources, potentially impacting immobile industries. Conversely, a decline in a mobile industry can free up local resources for these immobile sectors. This study forms my dissertation for a doctorate in economics at the Universitat Mannheim, where I have been part of the Graduiertenkolleg Finanz- und Gütermärkte since October 1993. Additionally, I participated in the European Network for Training in Economic Research (ENTER) at University College London from November 1994 to April 1995. I acknowledge the implicit support from the Deutsche Forschungsgemeinschaft and the ERASMUS programme.