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No Place like Home? Location choice and firm survival after forced relocation in the German machine tool industry

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Author Info

  • Guido Buenstorf
  • Christina Guenther

Abstract

We study location choices and firm performance in the German machine tool industry, focusing on the forced migration of East German firms after World War II. Our analysis of location choices supports earlier findings that industry agglomerations attract further entrants. Relocating firms outperformed entrants that possessed no prior industry experience; apparently were able to build on their prewar capabilities. We find no evidence suggesting that firm performance benefited from agglomeration effects.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 07-16.

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Date of creation: 2007
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Handle: RePEc:aal:abbswp:07-16

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Web page: http://www.druid.dk/

Related research

Keywords: Capabilities; agglomeration economies; location choice; firm survival; machine tool industry;

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References

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Cited by:
  1. Guido Buenstorf & Matthias Geissler, 2008. "The Origins of Entrants and the Geography of the German Laser Industry," Papers on Economics and Evolution 2008-14, Max Planck Institute of Economics, Evolutionary Economics Group.
  2. Alex Coad & Christina Guenther, 2012. "Age, diversification and survival in the German machine tool industry, 1953-2002," Papers on Economics and Evolution 2011-23, Max Planck Institute of Economics, Evolutionary Economics Group.

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