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Improved production opportunities and unchanged sales problems - time is running out for east Germany

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  • Albert Müller

Abstract

Between 1991 and 1999, more than DM 1.59 trillion was invested in east Germany. But despite the relatively strong capital intensity, the labour and capital productivity of east German enterprises lags behind its competitors. Unit labour costs continue to be too high in east Germany, and there are still too few long-term, sustainable market-entry and marketing successes.

Suggested Citation

  • Albert Müller, 2001. "Improved production opportunities and unchanged sales problems - time is running out for east Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(03), pages 30-40, March.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:03:p:30-40
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    References listed on IDEAS

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    5. Hans-Werner Sinn, 2000. "Zehn Jahre deutsche Wiedervereinigung - Ein Kommentar zur Lage der neuen Länder," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(26-27), pages 10-22, November.
    6. Hans-Werner Sinn, 2000. "Ten years of German unification - a commentary on the situation in east Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(26), pages 10-22, November.
    7. Unknown, 2000. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2000," Report Series 26083, Hamburg Institute of International Economics.
    8. Bernd Görzig & Joachim Schintke, 1998. "Lange Zeitreihen der Investitionstätigkeit in den Sektoren des verarbeitenden Gewerbes," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 67(3), pages 165-188.
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    Cited by:

    1. Albert Müller, 2002. "A prerequisite for a lasting upswing in east Germany: more equipment and plant investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(05), pages 27-30, March.

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    More about this item

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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