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Firm dynamics in East Germany: first empirical results

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  • Harhoff, Dietmar
  • Stahl, Konrad O.

Abstract

In this paper, we report results of an ongoing empirical analysis of firm dynamics in East Germany. After discussing specifics of a newly available data set with information on more than 100.000 firms, we analyze patterns of business starts and failures. Furthermore, we present preliminary results on employment, revenue and labor productivity growth in East German firms. They suggest that large East German enterprises are characterized by significant labor shedding and small or no nominal revenue growth, resulting in an apparently impressive gain in labor productivity. Small firms turn out to be the carriers of employment growth. On average, they experience the highest revenue growth rates. However, the combination of revenue and employment growth yields labor productivity increases well below those of larger firms.

Suggested Citation

  • Harhoff, Dietmar & Stahl, Konrad O., 1992. "Firm dynamics in East Germany: first empirical results," ZEW Discussion Papers 92-05, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:9205
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    Cited by:

    1. Felder, Johannes & Licht, Georg & Nerlinger, Eric A. & Smid, Menno, 1993. "Ergebnisse der Piloterhebung zum Mannheimer Innovationspanel," ZEW Discussion Papers 93-22, ZEW - Leibniz Centre for European Economic Research.
    2. Almus, Matthias & Nerlinger, Eric A. & Steil, Fabian, 1999. "Growth determinants of start-ups in Eastern Germany: a comparison between innovative and non-innovative firms," ZEW Discussion Papers 99-05, ZEW - Leibniz Centre for European Economic Research.
    3. Felder, Johannes & Harhoff, Dietmar & Licht, Georg & Nerlinger, Eric A. & Stahl, Harald, 1994. "Innovationsverhalten der deutschen Wirtschaft: Ergebnisse der Innovationserhebung 1993," ZEW Dokumentationen 94-01, ZEW - Leibniz Centre for European Economic Research.
    4. Felder, Johannes & Fier, Andreas & Nerlinger, Eric A., 1996. "High-Tech-Gründungen in den neuen Bundesländern: Entwicklung und Standorte," ZEW Discussion Papers 96-02, ZEW - Leibniz Centre for European Economic Research.

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