Promotion downward gradient calls the negative, usually economic effects key word, if for reasons of the structural policy European or national subsidies in together bordering areas are usually granted to differently high promotion sets, according to the so-called watering can principle. In this case the investments of the smaller promoted area turn off and to the more highly promoted area.

This in particular, if the infrastructure is comparable and in the more highly promoted area still further factors, as lower labour costs come with approximately same or however even higher qualification in addition. A good example is the former West German zone peripheral area along the German domestic border, which had been strongly subsidized long years up to the German unit by the promotion of edge of zone. This subsidy, which should adjust location disadvantages, did not increase necessarily the competitive ability that there residents of enterprises. These now with the German unit the promotion was extracted, on the other hand one they had to also maintain ground in the competition by the structure east highly promoted enterprises in the direct neighbourhood. The promotion downward gradient is mainly a problem for small and medium-sized enterprises (KMU), in particular the handicraft, which exhibit a higher local connection than the large-scale industry.

A further promotion downward gradient exists at the eastern state border to Poland and Tschechien or between Berlin and the surrounding countryside, as for example the municipality Ludwig field in Brandenburg.

Articles in category "Promotion downward gradient"

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