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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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 124.

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Length: 20 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:lue:wpaper:124

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Web page: http://leuphana.de/institute/ivwl.html

Related research

Keywords: EU-enlargement; enterprise performance; exports;

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References

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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, vol. 138(1), pages 83-96, March.
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Cited by:
  1. Åslund, Olof & Engdahl, Mattias, 2013. "1 Open borders, transport links and local labor markets," Working Paper Series, Center for Labor Studies 2013:7, Uppsala University, Department of Economics.
  2. Nils Braakmann & Alexander Vogel, 2009. "How does economic integration influence employment and wages in border regions? The case of the EU-enlargement 2004 and Germany’s eastern border," Working Paper Series in Economics 142, University of Lüneburg, Institute of Economics.
  3. 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.

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