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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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  • Guido Buenstorf

    (Max Planck Institute of Economics, Evolutionary Economics Group)

  • Christina Guenther

    (Max Planck Institute of Economics, Evolutionary Economics Group)

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.

Suggested Citation

  • Guido Buenstorf & Christina Guenther, 2007. "No place like home? Location choice and firm survival after forced relocation in the German machine tool industry," Jena Economics Research Papers 2007-053, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-053
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    Cited by:

    1. Hausmann, Ricardo & Neffke, Frank M.H., 2019. "The workforce of pioneer plants," Research Policy, Elsevier, vol. 48(3), pages 628-648.
    2. Douglas J. Krupka, 2009. "Location‐Specific Human Capital, Location Choice And Amenity Demand," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 833-854, December.
    3. Alex Coad & Christina Guenther, 2012. "Age, diversification and survival in the German machine tool industry, 1953-2002," Papers on Economics and Evolution 2011-23, Philipps University Marburg, Department of Geography.
    4. Alex Coad & Christina Guenther, 2013. "Diversification patterns and survival as firms mature," Small Business Economics, Springer, vol. 41(3), pages 633-649, October.
    5. Guido Buenstorf & Matthias Geissler, 2011. "The origins of entrants and the geography of the German laser industry," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 251-270, June.
    6. Alex Coad & Christina Guenther, 2014. "Processes of firm growth and diversification: theory and evidence," Small Business Economics, Springer, vol. 43(4), pages 857-871, December.

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    More about this item

    Keywords

    Capabilities; agglomeration economies; location choice; firm survival; machine tool industry;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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