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East German Science After Communism: Why does Westernization correlate with Productivity

Author

Listed:
  • Ho Fai Chan

    (Queensland University of Technology)

  • Vincent Lariviére

    (University of Montreal)

  • Naomi Moy

    (Queensland University of Technology)

  • Ali Sina Önder

    (University of Portsmouth)

  • Donata Schilling
  • Benno Torgler

    (Queensland University of Technology)

Abstract

Using German re-unification as a natural experiment, we analyze the effect of institutional change in the East German academic system on the scientific productivity of East German scientists in the research fields of science, technology, engineering, mathematics, and medicine (STEMM). We find a strong correlation between restructuring of the East German academic system and the productivity of East German scientists. To identify the causal effects that yield this correlation, we investigate to what extent the observed productivity is brought about by efficiency gains and to what extent by reallocation. We analyze difference-in-differences in productivity, collaboration, field switching behavior, and attrition of the treatment and non-treatment groups of East German scientists. We find reallocation between fields or attrition to be the dominant feature that underlies East German scientists’ productivity differences when institutional effects are isolated.

Suggested Citation

  • Ho Fai Chan & Vincent Lariviére & Naomi Moy & Ali Sina Önder & Donata Schilling & Benno Torgler, 2021. "East German Science After Communism: Why does Westernization correlate with Productivity," Working Papers in Economics & Finance 2021-09, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group, revised 30 Jun 2022.
  • Handle: RePEc:pbs:ecofin:2021-09
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    References listed on IDEAS

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    Cited by:

    1. Ali Sina Önder, 2022. "Ostdeutsche Wissenschaft nach der Wende: Institutioneller Umbau und Produktivität," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 29(04), pages 23-28, August.

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    More about this item

    Keywords

    Productivity; Peer Effects; Institutions; Competition; Reallocation; East Germany;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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