Where enterprises lead, people follow? Links between migration and FDI in Germany
Claudia M. Buch, J. Kleinert, Farid Toubal
European Economic Review,
No. 8,
2006
Abstract
Standard neoclassical models of economic integration are based on the assumptions that capital and labor are substitutes and that the geography of factor market integration does not matter. Yet, these two assumptions are violated if agglomeration forces among factors from specific source countries are at work. Agglomeration implies that factors behave as complements and that the country of origin matters. This paper analyzes agglomeration between capital and labor empirically. We use state-level German data to answer the question whether and how migration and foreign direct investment (FDI) are linked. Stocks of inward FDI and of immigrants have similar determinants, and the geography of factor market integration matters. There are higher stocks of inward FDI in German states hosting a large foreign population from the same country of origin. This agglomeration effect is confined to higher-income source countries.
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Is Merger Control too Lax in Transition Countries? An Assessment of the apparently passive behaviour of Antimonopoly and Competition Offices towards enterprise concentration in transition countries
Jens Hölscher, L. Somogyi, Johannes Stephan, A. Török
ACE Phare Project No: P97-8020-R,
2001
Abstract
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Where are the economic development cores of East Germany? Results of a survey of the focuses of branches, enterprise networks and innovative competence fields in the East German Regions
Peter Franz, Gerhard Heimpold, Martin T. W. Rosenfeld
Regionale Strukturpolitik - quo vadis?, Informationen zur Raumentwicklung, Heft 9,
No. 9,
2006
Abstract
The contribution presents the results of an empirical study conducted by the Halle Institute for Economic Research on behalf of the Federal Office for Building and Regional Planning. The study concerns the identification of “regional clusters” for all spatial planning regions in East Germany. As criteria to identify clusters, three components were taken into consideration: spatially concentrated industries, enterprise networks and innovative competence fields, whereas, for the purpose of identifying “clusters”, the networks and innovative competences have to show a co-incidence with the industry which is spatially concentrated. Cases of co-incidence of all three elements were categorised as economic development cores (or spots), i. e. as forms of spatially concentrated economic activities which show cluster-relevant qualities. For regions which possess economic development spots, the growth perspectives can be expected as more favourable in comparison with other regions. The findings show a particularly high concentration of economic development spots in the Berlin region as well as in the Federal States of Saxony and Thuringia, where the cities of Dresden, Leipzig, Erfurt and Chemnitz form delineating points within which a particularly high number of economic development spots are existent. As a consequence, the study might initiate a debate in favour of a stronger spatial concentration of regional policy measures instead of spreading the resources by “watering can principle”.
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Neubeginn der ausländischen Direktinvestitionen nach 1990 - eine Einführung
Jutta Günther
Willkommene Investoren oder nationaler Ausverkauf?: Ausländische Direktinvestitionen in Ostmitteleuropa im 20. Jahrhundert. Frankfurter Studien zur Wirtschafts- und Sozialgeschichte Ostmitteleuropas, Band 11,
2006
Abstract
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Direktinvestitionen in der Zwischenkriegszeit und nach 1990 - erste Ergebnisse eines nicht ganz einfachen Vergleichs
Jutta Günther, Dagmara Jajesniak-Quast
Willkommene Investoren oder nationaler Ausverkauf?: Ausländische Direktinvestitionen in Ostmitteleuropa im 20. Jahrhundert. Frankfurter Studien zur Wirtschafts- und Sozialgeschichte Ostmitteleuropas, Band 11,
2006
Abstract
Foreign direct investments have a long tradition in Central East European countries and reached a considerable level already during the interwar period. From an economic point of view, Central Eastern Europe strongly depends on foreign investments - today like in the interwar period. Technological backwardness and a lack of internal sources of capital hampered the development of a self-sufficient economy in the newly founded states of Central Eastern Europe after the First World War as well as after the breakdown of socialism. Nevertheless, foreign direct investment has always been subject to a critical debate too in the host economies. Focusing on a comparison between Poland, Czechoslovakia/Czech Republic, and Hungary, the book deals with the continuities and changes of foreign direct investments in Central Eastern Europe - an issue that has been widely neglected in historical research so far.
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Vernetzung und einzelwirtschaftliche Effekte von Unternehmen der Kunststoff- und Biotechnologiebranche in Mitteldeutschland - eine Analyse am Beispiel der Clusterinitiativen „Chemie/Kunststoffe“ und „Biotechnologie/Life Sciences“
Walter Komar
IWH-Sonderhefte,
No. 2,
2006
Abstract
According to theoretical implications the success of enterprises benefits from co-operation in clusters and networks. Studies of cluster and network processes show this for the industries chemistry/plastics and biotechnology/Life Sciences in Central Ger-many. Therefore enterprises which are organized in networks have better economic characteristics. Estimations of the productivity of firms using co-operation-based and non-co-operation-based factors as independent variables reveal a significantly positive influence of the propensity to co-operate as well as networking. In this regard scientific institutions and universities located in the region of firms play an important role. From this analysis it can be generalized and concluded, also concerning other industries, that networks emerge automatically under certain conditions. Nevertheless their creation and development should be encouraged, e.g. by efficiency strengthening of public research and university education as well as the intensification of co-operation and networking between the scientific and the corporate sector. This can promote the technology and human capital transfer.
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Risikomanagements als Werttreiber: Volks- und betriebswirtschaftliche Perspektive
Ulrich Blum, Werner Gleißner
Wertorientiertes Management,
2006
Abstract
The article inquires how risk and its management directly influence ther wealth of nations and the performance of enterprises. The sources of wealth, especially trade and externalities, are rellated to risk as is its impact on the economic value of the firm. Fundamental methods to control risk as a method of increasing shareholder value are proposed.
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Asset Tangibility and Capital Allocation within Multinational Corporations
Diemo Dietrich
IWH Discussion Papers,
No. 4,
2006
Abstract
We investigate capital allocation across a firm's divisions that differ with respect to the degree of asset tangibility. We adopt an incomplete contracting approach where the outcome of potential debt renegotiations depends on the liquidation value of assets. However, with diversity in terms of asset tangibility, liquidation proceeds depend on how funds have been allocated across divisions. As diversity can be traced back to institutional differences between countries, we provide a rationale for multidivisional decision- making in an international context. A main finding is that multinationals may be bound to go to certain countries when financiers cannot control the capital allocation.
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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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Angewandte Industrieökonomik: Theorien, Modelle, Anwendungen
Ulrich Blum, Simone Müller, Andreas Weiske
,
2006
Abstract
Modern entrepreneurship comprises a mix of bourgeois morale and the striving for adventure: Bourgeois morale implies efficiency, reputation, the rule of the law. And adventure implies new frontiers, the spirit of competition, innovation and a pioneer’s attitude – up to the destruction of competitors. The modern entrepreneur’s social position thus is a ambiguous; the entrepreneur needs a special attitude with respect to economic activity as discussed by Werner Sombard (1913) and Max Weber (1905); society has to accept the positive ethical quality of profit seeking in order to survive. The modern theory of the enterprise promoted by neoclassic theory does not include any of these elements of real entrepreneurship. Industrial organisation theory tries to structure models closer to reality, thus allowing empirical testing. In many aspects, it is based on neoclassic theory, but also accepts the concept of strategic behaviour which includes potential reactions of other market participants in ones own activities. Elements of evolutionary economics, risk theory and modern information theory thus become important. The overarching question of the entrepreneur, who strives for a higher than normal profit in the market becomes: under which conditions should I enter the market and under which conditions will potential entrants do the same? How should I set my prizes and what reactions must I expect? How can I signal friendly behaviour to competitors? How can I differentiate myself from them? What importance do innovations and advertising have? The book roles out these questions in three large chapters on technology and market structure, on prize setting and signalling, and on research, development and innovation. An introduction explains individual behavioural patterns within the societal context – often in a historical perspective. Three methodological chapters introduce the reader into strategic thinking as the core aspect of the industrial organisation theory, the “old industrial organisation theory” and the neoclassic basic models. Each chapter is extended by exercises and tips for solutions.
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