Large corporations and regional development

Bade F-J. (1983) Large corporations and regional development, Reg. Studies 17, 315–326. Which impact do the large enterprises have on the regional economic structure of the FRG? Which activities do they carry out in their various locations which disfavour the peripheral regions? The preliminary results of an investigation seeking answers to these questions are presented in this paper. Based on an empirical investigation into the locational structure of large firms, the results appear to contradict the current hypothesis in two respects. First, the spatial division of labour—headquarters within the central agglomeration, production plants on the periphery—does not appear to hold true insofar as most of the production plants are located within the agglomerations, too. Second, there are a number of differences in quality between the central and the few peripheral establishments. When compared with the endogenous plants in peripheral areas, however, the establishments of large firms are clearly better off.