Economic convergence across German regions in light of empirical findings
Udo Ludwig, John B. Hall
Cambridge Journal of Economics,
2006
Abstract
This paper challenges the convergence hypothesis advanced by R. Barro and X. Sala-i-Martin as it is applied to explain the forces behind, patterns exhibited by and time line for German regional convergence. Exposed in some detail are the spurious neoclassical and marginalist assumptions, purporting that 'automatic' forces would indeed bring about a convergence in per capita incomes between two German regions. A trend exhibiting slow growth in per capita income in Germany's eastern region renders a Beta coefficient so low as to rule out convergence altogether. In addition, capital fails to move between German regions in the pattern assumed by the convergence hypothesis.
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Can Export Activities of Firms Contribute to the Catching-Up Process of Transitional Economies?
Brigitte Loose, Udo Ludwig
Can the transitional and development economies ever catch up? The Materials from The International Scientific Conference Cracow,
2006
Abstract
In contrast to the majority of the former centrally planned economies, the East German economy has suffered from enormous losses in the transformation process. In the study the question is analyzed whether exports can contribute to the catching-up process in transitional economies. Here it must be explained why the firms emerging out of the privatization process in economies in transition are successful if the export sector consists of small and medium sized enterprises. That is the case with East German manufacturing industry. The study is based on individual company data from the surveys of the East Germany's and North Rhine Westphalia's manufacturing industry between 1995 and 2001 stemming from official statistics.
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Network Access Charges, Vertical Integration, and Property Rights Structure
Christian Growitsch, Thomas Wein
Energy Economics,
No. 2,
2005
Abstract
After the deregulation of the German electricity markets in 1998, the German government opted for a regulatory regime called negotiated third party access, which would be subject to ex post control by the federal cartel office. Network access charges for new competitors are based on contractual arrangements between energy producers and industrial consumers. As the electricity networks are incontestable natural monopolies, the local and regional network operators are able to set (monopolistic) charges at their own discretion, limited only by their concerns over possible interference by the federal cartel office (Bundeskartellamt). In this paper we analyse if there is evidence for varying charging behaviour depending on a supplier`s economic independence (structure of property rights) or its level of vertical integration. For this purpose we hypothesise that incorporated and vertically integrated suppliers set different charges than independent utility companies. Multivariate estimations show a relation between network access charges and the network operator’s economic independence as well as level of vertical integration. On the low voltage level, for an estimated annual consumption of 1700 kW/h, vertically integrated firms set – as predicted by our hypothesis - significantly lower access charges than vertically separated suppliers, whereas incorporated network operators charge significantly higher charges compared to independent suppliers. There is insufficient evidence available to confirm these results for other consumptions or voltage levels.
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Economic Capability of East German Regions: Results of a Cluster Analysis
Franz Kronthaler
Regional Studies,
No. 6,
2005
Abstract
This paper analyses the economic capability of East German regions compared with West German regions. Based on new growth theory and new economic geography, and using relevant empirical literature, regions are clustered according to a set of growth factors. The clustering results find little evidence that the economic capability of East German regions is already comparable with West German regions. Economic disadvantages are particularly rooted in lower technical progress, a lack of entrepreneurship, lower business and industrial concentration, and a loss of human capital. However, there are a few East German regions with a high economic capability, but even those suffer from economic disadvantages such as lower technical progress, lower industrial activity and a poorer regional accessibility.
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Eastern Germany in the process of catching-up: the role of foreign and Western German investors in technological renewal
Jutta Günther, Oliver Gebhardt
Eastern European Economics,
No. 3,
2005
Abstract
Foreign direct investment as a means to support system transformation and the ongoing process of catching-up development has caught researcher’s attention for a number of Central and Eastern European countries. Not much research, however, has been carried out for East Germany in this respect although FDI plays an important role in East Germany too. Descriptive analysis by the use of unique survey data shows that foreign and West German affiliates perform much better with respect to technological capability and labor productivity than domestic companies in East Germany. The results of the regression analysis, however, show that it is not the status of ownership as such that forms a significant determinant of innovativeness in East Germany but rather general firms specific characteristics attached to it such as firm size, export-intensity, technical state of the equipment, and R&D activities. Due to the fact that foreign and West German affiliates perform better with respect to exactly all of these characteristics, they can be considered as a means to support the process of technological renewal and economic development.
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Analysis of statements made in favour of and against the adoption of competition law in developing and transition economies
Johannes Stephan, Franz Kronthaler, Frank Emmert
Einzelveröffentlichungen,
No. 9,
2005
Abstract
The paper is concerned with documenting and assessing statements made by policymakers, opinion formers, and other stakeholders in favour and against the adoption of competition laws with particular reference to transition and developing countries which have not yet enacted these kind of laws. For example, claims that competition enforcement might reduce the inflow of foreign direct investment, or that other policies are successfully used as substitutes for competition law, are assessed. In a first step, the method of generalized analysis structures the list of statements around core issues of common features to make them accessible to further interpretation and assessment. The paper shows that some claims are in fact country or region specific, and specific to the development level of the respective countries. In a second step, the core issues are assessed according to economic and legal criteria. Since the analysis focuses on transition and developing countries, the criteria for economic assessment are predominantly economic growth and development issues, but also include the economic coherency of a set of claims submitted by stakeholders in a given country. The criteria for legal assessment include whether claims are problematic in light of WTO-principles, or are even born out of a political objective which is incompatible with the spirit, if not the letter of WTO-rules.
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Determinants and Effects of Foreign Direct Investment: Evidence from German Firm-Level Data
Claudia M. Buch, J. Kleinert, A. Lipponer
Economic Policy,
No. 41,
2005
Abstract
Foreign direct investment is an essential aspect of ‘globalization’ yet its empirical determinants are not well understood. What we do know is based either on poor data for a wide range of nations, or good data for the US and Swedish cases. In this paper, we provide evidence on the determinants of the activities of German multinational firms by using a newly available firm-level data set from the Deutsche Bundesbank. The specific goal of this paper is to demonstrate the relative role of country-level and firm-level determinants of foreign direct investment. We focus on three main questions: First, what are the main driving forces of German firms’ multinational activities? Second, is there evidence that sector-level and firm-level factors shape internationalization patterns? Third, is there evidence of agglomeration effects in the foreign activities of German firms? We find that the market access motive for internationalization dominates. Firms move abroad mainly to gain better access to large foreign markets. Cost-saving motives, however, are important for some manufacturing sectors. Our results strongly suggest that firm-level heterogeneity has an important influence on internationalization patterns – as stressed by recent models of international trade. We also find positive agglomeration effects for the activities of German firms that stem from the number of other German firms that are active on a given foreign market. In terms of lessons for economic policy, our results show that lowering barriers to the integration of markets and encouraging the formation of human capital can promote the activities of multinational firms. However, our results related to the heterogeneity of firms and agglomeration tendencies show that it might be difficult to fine-tune policies directed at the exploitation of synergies and at the creation of clusters of foreign firms.
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The Role of Regional Knowledge Sources for Innovation – An Empirical Assessment
Michael Fritsch, Viktor Slavtchev
Freiberg Working Papers, Nr. 15-2005,
No. 15,
2005
Abstract
Wir untersuchen die Bedeutung verschiedener Inputs, insbesondere verschiedener Wissensquellen, für den regionalen Output an Erfindungen (Patente) mithilfe einer Wissensproduktionsfunktion. Als Wissensquellen werden die FuE-Beschäftigte im Privatsektor, die Größe der Universitäten und Fachhochschulen sowie das Volumen der von ihnen aus verschiedenen Quellen eingeworbenen Drittmittel berücksichtigt. Die Bedeutung dieser Wissensquellen wurde systematisch auf der Ebene der westdeutschen Kreise getestet, wobei Informationen sowohl über den jeweiligen Kreis als auch über die Nachbarkreise einbezogen wurden. Es stellt sich heraus, dass von der Qualität der in den Universitäten und Fachhochschulen betriebenen Forschung ein signifikanter Einfluss auf die regionale Innovationstätigkeit ausgeht. Die reine Größe der Universitäten und Fachhochschulen in der Region hat hingegen keinen Einfluss. Darüber hinaus ermitteln wir Unterschiede nach Herkunft von Drittmitteln sowie Unterschiede in der Bedeutung verschiedener Fachdisziplinen für regionale Innovationsaktivitäten. Wissensspillover sind im Wesentlichen auf die angrenzenden Kreise begrenzt.
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Industries in east Germany: regional clusters
Franz Kronthaler
Wirtschaft im Wandel,
No. 16,
2004
Abstract
In der Politik wird in letzter Zeit verstärkt darüber diskutiert, wie dem Aufbau Ost eine größere Dynamik verliehen werden könnte. Immer stärker in den Vordergrund der Debatte rückt dabei die Forderung, dass die Finanzhilfen sowohl regional als auch sektoral stärker konzentriert werden sollten. Dies war Anlass näher zu betrachten, wie die unternehmerischen Aktivitäten der einzelnen Branchen in Ostdeutschland räumlich verteilt sind und in welchen Bereichen die ostdeutschen Regionen Stärken aufweisen. Die Befunde der Untersuchung zeigen, dass in Ostdeutschland zahlreiche Branchen regional stark konzentriert sind und dass sich die wichtigsten Standorte des Produzierenden Gewerbes und der Unternehmensdienstleistungen auf Berlin und auf Regionen in Sachsen konzentrieren. Die Standorte knüpfen dabei in der Regel an den traditionellen Strukturen oder an spezifischen Potenzialen der Regionen an.
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IWH barometer of economic activity
Udo Ludwig
Wirtschaft im Wandel,
No. 16,
2004
Abstract
Die im Sommer beobachtete konjunkturelle Abschwächung in Deutschland ging nicht spurlos an der Wirtschaft der neuen Bundesländer vorbei. Die Auswirkungen auf die Industrieproduktion waren jedoch infolge der geringen Abhängigkeit von der Auslandsnachfrage moderat. Insbesondere die Hersteller von Vorleistungsgütern bekamen die Flaute vom Ausland zu spüren. Die Impulse aus dem Inland verstärkten sich dagegen. Die Hersteller von Investitionsgütern litten allerdings trotz Belebung der Investitionsaktivitäten in Deutschland weiterhin unter der Orderebbe, die Abwärtstendenz verringerte sich jedoch. Die Konsumgüterproduzenten konnten dank gestiegener Bestellungen aus dem Inland aufatmen
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