Non-market Allocation in Transport: A Reassessment of its Justification and the Challenge of Institutional Transition
Ulrich Blum
50 Years of Transport Research: Experiences Gained and Major Challenges Ahead,
2005
Abstract
Economic theory knows two systems of coordination: through public choice or through the market principle. If the market is chosen, then it may either be regulated, or it may be fully competitive (or be in between these two extremes). This paper first inquires into the reasons for regulation, it analyses the reasons for the important role of government in the transportation sector, especially in the procurement of infrastructure. Historical reasons are seen as important reasons for bureaucratic objections to deregulation. Fundamental economic concepts are forwarded that suggest market failure and justify a regulatory environment. The reasons for regulation cited above, however, may be challenged; we forward theoretical concepts from industrial organization theory and from institutional economics which suggest that competition is even possible on the level of infrastructure. The transition from a strongly regulated to a competitive environment poses problems that have given lieu to numerous failures in privatization and deregulation. Structural inertia plays an important role, and the incentive-compatible management of infrastructure is seen as the key element of any liberal transportation policy. It requires that the setting of rules on the meta level satisfies both local and global efficiency ends. We conclude that, in market economies, competition and regulation should not be substitutes but complements. General rules, an "ethic of competition" have to be set that guarantee a level playing field to agents; it is complimented by institutions that provide arbitration in case of misconduct.
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Quality of Service, Efficiency, and Scale in Network Industries: An Analysis of European Electricity Distribution
Christian Growitsch, Tooraj Jamasb, Michael Pollitt
IWH Discussion Papers,
No. 3,
2005
Abstract
Quality of service is of major economic significance in natural monopoly infrastructure industries and is increasingly addressed in regulatory schemes. However, this important aspect is generally not reflected in efficiency analysis of these industries. In this paper we present an efficiency analysis of electricity distribution networks using a sample of about 500 electricity distribution utilities from seven European countries. We apply the stochastic frontier analysis (SFA) method on multi-output translog input distance function models to estimate cost and scale efficiency with and without incorporating quality of service. We show that introducing the quality dimension into the analysis affects estimated efficiency significantly. In contrast to previous research, smaller utilities seem to indicate lower technical efficiency when incorporating quality. We also show that incorporating quality of service does not alter scale economy measures. Our results emphasise that quality of service should be an integrated part of efficiency analysis and incentive regulation regimes, as well as in the economic review of market concentration in regulated natural monopolies.
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Sachsen-Anhalt als Wirtschaftsstandort: Wie erfolgreich sind das Land und seine Regionen?
Martin T. W. Rosenfeld
Geographische Rundschau,
2005
Abstract
The article examines the economic performance and the conditions for future economic development in the German Land of Saxony-Anhalt. After the integration of Saxony-Anhalt into the market economy since 1989, strong structural changes have taken place. Nevertheless, agriculture, coal mining and the chemical industry as some of the traditional sectors of the Land’s economy have remained their importance. The weak points of the economy are the low number of entrepreneurs and a low tendency for innovations in the private sector. The Magdeburg region and the Halle region have better conditions for (inter-) national competitiveness than the Altmark region and the Dessau region. But the potentials of the urban centers Magdeburg and Halle are - as compared to other East German cities - not very strong. For improving the eonomic conditions, new instruments for stimulating entrepreneurship and for strengthening the position of the two urban centers should be installed. In addition, innovation activities of private firms could be improved by new linkages between the private sector and Saxony-Anhalt’s public research units.
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Kooperation, Vernetzung und Erfolg von Unternehmen - die Biotechnologiebranche
Walter Komar
List Forum für Wirtschafts- und Finanzpolitik,
No. 2,
2005
Abstract
According to theoretical implications the succes of enterprises benefits from co-operation and integration into networks. Enterprises of the biotechnology sector in particular have a high propensity to build up co-operations. Estimations of the growth of firms using co-operation-based and non-co-operation-based factors as independent variables reveal a significantly positive influence of the propensity of co-operation as well as networking. In this regard scientific institutions and universities located in geographical proximity of firms play an important role. From this analysis it can be generalized and concluded, concerning other industries too, that networks emerge automatically under certain conditions. Nevertheless their creation and development should be encouraged, e.g. by efficiency incentives for public research and education of universities as well as an 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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Innovationskooperationen deutscher Unternehmen im europäischen und innerdeutschen Vergleich
Jutta Günther
Der Mittelstand an der Schwelle zur Informationsgesellschaft,
2005
Abstract
The study deals with innovation cooperation as a means to improve the competitiveness of enterprises. The empirical study compares the cooperation behaviour of innovative enterprises in Germany to other West European countries as well as between East and West Germany. The database used is the second Community Innovation Survey (CIS-2) of the EU. While German firms exhibit a cooperation frequency slightly below the average of the European Economic Area (EEA), enterprises in North European countries are by far most active with respect to cooperation frequency. The most important cooperation partner for firms in the EEA are other firms within the enterprise group, followed by suppliers and customers while German firms cooperate most frequently with universities. The comparative investigation of innovation cooperation in East and West Germany shows that East German firms cooperate more often than West German firms. However, a productivity advantage of cooperating firms against non-cooperating firms is only observable in West Germany. In East Germany, cooperating firms even exhibit a lower sales productivity than non-cooperating firms, which is explainable most probably through the fact that cooperation activities translate into productivity advantages only in the long run.
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Wirtschaftliche Rahmenbedingungen Leipzigs
Peter Franz
Leipzig 2020. Europäische Metropole oder mitteldeutsche Provinzperle? - alternative Visionen -, Beiträge des Workshops in Leipzig am 11. Juni 2005,
2005
Abstract
In comparing important economic indicators of several German city regions the economic future of the East German city of Leipzig is discussed . A special feature of the population in this region is the optimistic attitude with regards to the future regional development.
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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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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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Industries in east Germany: regional clusters
Franz Kronthaler
Wirtschaft im Wandel,
No. 16,
2004
Abstract
The study examines the spatial distribution of business activities in East Germany and exhibit in which industries the East German regions are specialised. The findings of the investigation show that in East Germany numerous industries are spatially concentrated and that the most important locations of industries and enterpise services concentrate on Berlin and on regions in Saxonia. The locations usually tie at the traditional structures or at specific potentials of the regions.
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Are German exports losing their power as driving force of the economy?
Hans-Ulrich Brautzsch, Udo Ludwig
Wirtschaft im Wandel,
No. 15,
2004
Abstract
Auf den ersten Blick scheinen die Exporte als Impulsgeber für die gesamtwirtschaftliche Produktion in Deutschland in letzter Zeit dramatisch an Bedeutung verloren zu haben. Während sie bis in die neunziger Jahre hinein nur zu 25% von Einfuhren gespeist wurden, kletterte ihr Importgehalt im Jahr 2000 auf 38%. Entsprechend hätte sich die Antriebskraft im Inland um 13 Prozentpunkte verringert. Der zweite Blick zeigt jedoch, dass dieser Sprung vor allem mit der Wiederausfuhr vorher importierter Güter verbunden ist. Die eigentliche Exportgüterproduktion in Deutschland absorbierte zwar im Jahr 2000 auch relativ mehr importierte Vorleistungsgüter als zuvor. Der direkte und indirekte Importgehalt an Vorleistungsgütern war aber mit 28% deutlich geringer als unter Einbezug der Wiederausfuhr und hat sich in der zweiten Hälfte der neunziger Jahre nur um 6 Prozentpunkte erhöht. Dies spricht zwar auch für ein Sinken der Antriebskraft des Exports, ist aber weniger dramatisch und steht eher im Einklang mit dem allgemeinen Trend der zunehmenden Internationalisierung der nationalen Produktions- und Wertschöpfungsprozesse als mit der Ausbreitung einer „Basarökonomie“ in Deutschland. Während die Importe für die Wiederausfuhr eher keine in Deutschland hergestellten Güter verdrängen, gibt es im Vorleistungsgüterbereich Indizien für die Verlagerung arbeitsintensiver Produktionsabschnitte in das Ausland aufgrund von Kostenvorteilen. Der damit verbundene Entzug an Wertschöpfung und Arbeitsplätzen wird aber in Deutschland bislang überkompensiert durch die kräftigen absoluten Exportzuwächse.
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