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Business environment and enterprise behaviour in East Germany compared to West Germany and Central Europe

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  • Krkoska, Libor
  • Robeck, Katrin
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    Abstract

    This paper examines institutional differences between East and West Germany and four Central European transition countries (Czech Republic, Hungary, Poland and Slovak Republic). Using enterprise survey data we show that institutional performance in East Germany is significantly different from West Germany. In addition, Central European transition countries are shown to have a similar institutional quality as East Germany in many areas. We also show that enterprises in the Central European transition countries have strongly focused on company level innovation and investment in human capital. Meanwhile, East German enterprises report investments in new products and processes as well as in skills well below the level of not only West Germany but also the Central European transition countries. Journal of Comparative Economics 36 (4) (2008) 568-583.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Comparative Economics.

    Volume (Year): 36 (2008)
    Issue (Month): 4 (December)
    Pages: 568-583

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    Handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:568-583

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    Web page: http://www.elsevier.com/locate/inca/622864

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    Keywords: Institutions Business environment Enterprise behaviour Transition;

    References

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    1. Erik Lehmann & Doris Neuberger & Solvig R”thke, 2004. "Lending to Small and Medium-Sized Firms: Is There an East-West Gap in Germany?," Small Business Economics, Springer, Springer, vol. 23(1), pages 23-39, 08.
    2. Boltho, Andrea & Carlin, Wendy & Scaramozzino, Pasquale, 1997. "Will East Germany Become a New Mezzogiorno?," Journal of Comparative Economics, Elsevier, Elsevier, vol. 24(3), pages 241-264, June.
    3. Michael Lechner & Conny Wunsch, 2006. "Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off," University of St. Gallen Department of Economics working paper series 2006, Department of Economics, University of St. Gallen 2006-24, Department of Economics, University of St. Gallen.
    4. Joachim Ragnitz, 2007. "Explaining the East German Productivity Gap � The Role of Human Capital," Kiel Working Papers, Kiel Institute for the World Economy 1310, Kiel Institute for the World Economy.
    5. Hans-Werner Sinn, 2000. "Germany's Economic Unification. An Assessment after Ten Years," CESifo Working Paper Series, CESifo Group Munich 247, CESifo Group Munich.
    6. Michael C. Burda, 2007. "What kind of shock was it? Regional Integration and Structural Change in Germany after Unification," Kiel Working Papers, Kiel Institute for the World Economy 1306, Kiel Institute for the World Economy.
    7. Helmut Rainer & Thomas Siedler, 2006. "Does Democracy Foster Trust?," Discussion Papers of DIW Berlin, DIW Berlin, German Institute for Economic Research 609, DIW Berlin, German Institute for Economic Research.
    8. George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
    9. Jennifer Hunt, 2006. "Staunching Emigration from East Germany: Age and the Determinants of Migration," Journal of the European Economic Association, MIT Press, MIT Press, vol. 4(5), pages 1014-1037, 09.
    10. Franz Kronthaler, 2003. "A Study of the Competitiveness of Regions based on a Cluster Analysis: The Example of East Germany," IWH Discussion Papers, Halle Institute for Economic Research 179, Halle Institute for Economic Research.
    11. Franz Kronthaler, 2003. "A Study of the Competitiveness of Regions based on a Cluster Analysis: The Example of East Germany," ERSA conference papers, European Regional Science Association ersa03p27, European Regional Science Association.
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    Cited by:
    1. Cosmin Marinescu & Octavian-Dragomir Jora, 2013. "Assessment on the “institutional economics” of corruption. Business and development in Romania, between formal and informal practices," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, Academy of Economic Studies - Bucharest, Romania, vol. 15(Special 7), pages 603-616, November.
    2. Cosmin Marinescu, 2013. "Institutional Quality of the Business Environment: Some European Practices in a Comparative Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 270-287, February.

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