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Expansion Continues to Dominate Investment in Eastern German Manufacturing

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  • Peter Jäckel

Abstract

In mid-March we reported on the investment plans in eastern German industry (ifo Schnelldienst 8/2000). The final evaluation of results of the Ifo Investment Survey (including all late responses) produced some changes for individual industries, but the results for industry as a whole were unchanged: DM 12.35 billion in investment in 2000. In the most recent survey, a question was included that had not been asked for some time on the structure of investments. The most important investment motive by far in eastern Germany continues to be expansion: on average for 1998, 1999 and 2000, about 58% of total investment went to expanding production facilities. Far less significant were rationalization measures (17%) and replacement measures (14%). A relatively unimportant role is played by restructurings and 'other investments'.

Suggested Citation

  • Peter Jäckel, 2000. "Expansion Continues to Dominate Investment in Eastern German Manufacturing," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(14), pages 11-13, May.
  • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:14:p:11-13
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    Cited by:

    1. Peter Jäckel, 2001. "Manufacturing industry in east Germany: will 2001 mark the first increase in investment in six years?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(13), pages 45-52, September.

    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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