Advanced Search
MyIDEAS: Login to save this paper or follow this series

Extent and Evolution of the Productivity Gap in Eastern Germany

Contents:

Author Info

  • Czarnitzki, Dirk

Abstract

Since the German re?unification in 1990, Eastern Germany is a transition economy. After a phase of catching up of productivity with respect to Western Germany from 1991 to 1996, the growth rates in the producing sector have dropped below the Western German ones since 1997. This study investigates whether this macroeconomic picture holds at the microeconomic level. For the special case of Eastern Germany, I suggest to identify productivity gaps by a comparison with Western Germany as a ?productivity benchmark?. Applying an econometric matching procedure allows to study the productivity gap at the firm level in detail. Besides labor and capital, other factors like innovation or firm ownership are taken into account. The macroeconomic facts are broadly confirmed: a significant gap still remains in recent years. Moreover innovators in Eastern Germany perform worse than their Western German pendants and firms owned by Western German or foreign companies perform better than Eastern German owned ones. --

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econstor.eu/bitstream/10419/23957/1/dp0325.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 03-25.

as in new window
Length:
Date of creation: 2003
Date of revision:
Handle: RePEc:zbw:zewdip:1019

Contact details of provider:
Postal: L 7,1; D - 68161 Mannheim
Phone: +49/621/1235-01
Fax: +49/621/1235-224
Email:
Web page: http://www.zew.de/
More information through EDIRC

Related research

Keywords: Productivity Gap; Eastern Germany; Non-parametric Matching;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Z, Griliches & Jacques Mairesse, 1997. "Production Functions : The Search for Identification," Working Papers, Centre de Recherche en Economie et Statistique 97-30, Centre de Recherche en Economie et Statistique.
  2. Richard Blundell & Steve Bond, 1999. "GMM estimation with persistent panel data: an application to production functions," IFS Working Papers, Institute for Fiscal Studies W99/04, Institute for Fiscal Studies.
  3. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2002. "Market Value and Patent Citations: A First Look," Development and Comp Systems 0201001, EconWPA.
  4. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
  5. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  6. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
  7. Almus, Matthias & Czarnitzki, Dirk, 2001. "The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany," ZEW Discussion Papers 01-10, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Fritsch, Michael & Mallok, Jörn, 1994. "Die Arbeitsproduktivität des industriellen Mittelstandes in Ostdeutschland : Stand und Entwicklungsperspektiven," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 27(1), pages 53-59.
  9. Hughes Hallett, A. & Ma, Y. & Melitz, J., 1996. "Unification and the policy predicament in Germany," Economic Modelling, Elsevier, Elsevier, vol. 13(4), pages 519-544, October.
  10. Jacqueline Rothfels, 1997. "Die ostdeutsche Wirtschaftsstruktur und die Produktivitätslücke," Wirtschaft im Wandel, Halle Institute for Economic Research, Halle Institute for Economic Research, vol. 3(13), pages 15-21.
  11. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  12. Henning Klodt, 2000. "Industrial Policy and the East German Productivity Puzzle," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 1(3), pages 315-333, 08.
  13. Michael C. Burda & Jennifer Hunt, 2001. "From Reunification to Economic Integration: Productivity and the Labor Market in Eastern Germany," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 1-92.
  14. Hans-Werner Sinn, 2003. "The Laggard of Europe (CESifo Forum Vol. 4, Special Issue No. 1)," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 4(SPECIALIS), pages 01-32, October.
  15. Vera Dietrich, 1997. "Kapitalausstattung und Produktivitätsrückstand im ostdeutschen Unternehmenssektor," Wirtschaft im Wandel, Halle Institute for Economic Research, Halle Institute for Economic Research, vol. 3(7), pages 5-9.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Joachim Ragnitz, 2007. "Explaining the East German Productivity Gap � The Role of Human Capital," Kiel Working Papers 1310, Kiel Institute for the World Economy.
  2. Hussinger, Katrin, 2005. "Did Concentration on Core Competencies Drive Merger and Acquisition Activities in the 1990s? Empirical Evidence for Germany," ZEW Discussion Papers 05-41, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Johannes Stephan & Karin Szalai, 2003. "Firm-Specific Determinants of Productivity Gaps between East and West German Industrial Branches," IWH Discussion Papers, Halle Institute for Economic Research 183, Halle Institute for Economic Research.
  4. Mallok, Jörn, 2005. "Produktivitätsentwicklung in ostdeutschen Industriebetrieben : Ergebnisse einer Fallstudienanalyse (1992-2002) (Development of productivity in eastern German industrial enterprises : results of a cas," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(4), pages 510-530.
  5. repec:iab:iabzaf:v:38:i:4:p:510-530 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:1019. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.