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Manufacturing industry in east Germany: will 2001 mark the first increase in investment in six years?

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  • Peter Jäckel

Abstract

According to the autumn 2000 Ifo Investment Survey in east Germany, a 7½% decline in investment in the manufacturing industry is expected for 2000. Strong increases in investment spending, however, occurred in the capital goods sector, especially in electrical engineering. Declines were reported in the basic materials and consumer goods sectors. This year, investment spending may increase by 4%, but this will be attributable to a few large-scale projects. These include especially projects in the electronic component sector, which will account for a quarter of total investment in manufacturing. The total share of capital goods manufacturers will amount to 55% this year. Many industries in the east German manufacturing sector still have completely different structures of investment goals as in west Germany.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:13:p:45-52
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    References listed on IDEAS

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    1. Peter Jäckel, 2000. "Eastern German Industry: Renewed Decline in Investment Following Completion of Major Projects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(08), pages 03-08, April.
    2. Peter Jäckel & Astrid Stanca, 1997. "Neue Bundesländer : 1997 nur leichter Rückgang der Industrieinvestitionen," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 50(36), pages 16-22, October.
    3. Peter Jäckel, 1999. "Neue Bundesländer: Industrieinvestitionen auf dem Weg zum," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 52(08), pages 03-09, October.
    4. Annette Weichselberger, 1998. "Westdeutsche Industrie : anhaltende Investitionsbereitschaft ; die neuen Ergebnisse des ifo Investitionstests," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 51(33), pages 3-8, October.
    5. Peter Jäckel & Jan Müller, 2001. "Ifo Investment Survey in construction: clearly reduced investment budget in east and west Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(13), pages 35-44, September.
    6. Peter Jäckel, 2000. "East Germany: Investments in manufacturing continue to fall back to the "normal" level," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(31), pages 37-41, December.
    7. 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.
    8. Joachim Gürtler, 2001. "East German manufacturing: Production still in full swing, first reports of favourable profitability, slight increase in employment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(09), pages 33-40, October.
    9. Peter Jäckel & Sabine Nill, 1995. "Verarbeitendes Gewerbe in den neuen Bundesländern : Investitionen 1995 voraussichtlich auf neuem Rekordniveau," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 48(24), pages 03-10, October.
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    Cited by:

    1. Annette Weichselberger, 2001. "West German industry invests more in 2001 than planned," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(14), pages 23-31, October.
    2. Neyer, Ulrike, 2004. "Asymmetric information in credit markets--implications for the transition in Eastern Germany," Economic Systems, Elsevier, vol. 28(1), pages 61-78, March.
    3. Volker Rußig, 2001. "Construction 2001/02: downturn continues," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(18), pages 21-32, October.
    4. Peter Jäckel & Jan Müller, 2001. "Ifo Investment Survey in construction: clearly reduced investment budget in east and west Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(13), pages 35-44, September.
    5. Joachim Gürtler, 2001. "East German manufacturing: Production still in full swing, first reports of favourable profitability, slight increase in employment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(09), pages 33-40, October.

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    JEL classification:

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

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