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The impact of the 2004 EU-enlargement on enterprise performance and exports of service enterprises in the German eastern border region

Author

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  • Nils Braakmann

    (Institute of Economics, University of Lüneburg)

  • Alexander Vogel

    (Institute of Economics, University of Lüneburg)

Abstract

We consider the impact of the 2004 EU-enlargement on enterprise performance and the exporting behavior of German service enterprises in Germany’s eastern border region. Our results from regression adjusted difference-in-differences-estimators combined with matching and panel data from official statistics suggest that the EU-enlargement resulted in a decline by circa 1 percent in the turnover and the profitability of large enterprises in the border region, respectively. For small enterprises, we find an annual increase in turnover by 2.7% in both 2004 and 2005 and an annual decrease in profitability by 1.8 and 2.6 percentage points in 2004 and 2005 respectively.

Suggested Citation

  • Nils Braakmann & Alexander Vogel, 2009. "The impact of the 2004 EU-enlargement on enterprise performance and exports of service enterprises in the German eastern border region," Working Paper Series in Economics 124, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:124
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    References listed on IDEAS

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    1. Hartmut Egger & Peter Egger, 2002. "How international outsourcing drives up Eastern European wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 83-96, March.
    2. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
    3. Giancarlo Gandolfo, 2014. "International Trade Theory and Policy," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-37314-5, August.
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    Cited by:

    1. Alexander Vogel, 2009. "The German Business Services Statistics Panel 2003 to 2007," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(3), pages 515-522.
    2. Åslund, Olof & Engdahl, Mattias, 2013. "Open borders, transport links and local labor markets," Working Paper Series 2013:9, Uppsala University, Department of Economics.
    3. Nils Braakmann & Alexander Vogel, 2011. "How does economic integration influence employment and wages in border regions? The case of the EU enlargement 2004 and Germany’s eastern border," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 303-323, June.

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    More about this item

    Keywords

    EU-enlargement; enterprise performance; exports;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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