Neue Unternehmen sind Hoffnungsträger
Jürgen Schmude, Kerstin Wagner
External Publications,
2006
Abstract
The paper reveals firm birth rates and survivor rates at the level of German districts (Kreise). Rates vary both between regions and industries. For the business service and bank/insurance sector, firm formation rates are above-median of the private economy, while production industries show highest survivor rates.
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Structural Change during Transition: Is Russia Becoming a Service Economy?
Albrecht Kauffmann
Volkswirtschaftliche Diskussionsbeiträge der Wirtschafts- und Sozialwissenschaftlichen Fakultät, Universität Potsdam, Nr. 80,
No. 80,
2005
Abstract
This paper analyses the structural change in Russia during the transition from the planned to a market economy. With regard to the famous three sector hypothesis, broad economic sectors were formed as required by this theory. The computation of their shares at GNP at market prices using Input-Output tables, and the adjustment of results from distortions, generated as side effects of tax avoidance practices, shows results that clearly reject claims that Russia would be on the road to a post-industrial service economy. Instead, at least until 2001, a tendency of “primarisation“ could be observed, that presents Russia closer to less-developed countries.
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The Impact of Technology and Regulation on the Geographical Scope of Banking
Hans Degryse, Steven Ongena
Oxford Review of Economic Policy,
No. 4,
2004
Abstract
We review how technological advances and changes in regulation may shape the (future) geographical scope of banking. We first review how both physical distance and the presence of borders currently affect bank lending conditions (loan pricing and credit availability) and market presence (branching and servicing). Next we discuss how technology and regulation have altered this impact and analyse the current state of the European banking sector. We discuss both theoretical contributions and empirical work and highlight open questions along the way. We draw three main lessons from the current theoretical and empirical literature: (i) bank lending to small businesses in Europe may be characterized both by (local) spatial pricing and resilient (regional and/or national) market segmentation; (ii) because of informational asymmetries in the retail market, bank mergers and acquisitions seem the optimal route of entering another market, long before cross-border servicing or direct entry are economically feasible; and (iii) current technological and regulatory developments may, to a large extent, remain impotent in further dismantling the various residual but mutually reinforcing frictions in the retail banking markets in Europe. We conclude the paper by offering pertinent policy recommendations based on these three lessons.
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Business services in East Germany - an update
Siegfried Beer
Wirtschaft im Wandel,
No. 8,
2004
Abstract
The article presents the results of the German service sector statistic 2001 for company oriented services in the New Länder (without Berlin), which have been derived from data of the regional statistical offices. The article can be regarded as an update of an earlier version (see “Wirtschaft im Wandel”, 12/2003, p.342-349). Fundamental results are: 1. Compared to 2000, the New Länder’s proportion of Germany’s total revenue and employment in company oriented services has, compared to 2000, slightly increased, but remains rather small. 2. The profitability of East German companies has deteriorated, measured by total expenses per sales unit. Partially this might be due to the increased number of businesses. 3. Last evaluation’s assumption, that East German company’s labor productivity (gross value added per employees) is half of the West German’s, has been proofed in this actual evaluation. An illustration of reasons is not being provided since it has been discussed extensively in the first evaluation.
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Enterprise-related services in East-Germany – an investigation of the service sector statistics
Siegfried Beer
Wirtschaft im Wandel,
No. 12,
2003
Abstract
According to the national accounts in East Germany, the enterprise-related services have developed substantielly since 1990. This is expressed by the average annual increase of real gross value added of 9.5% (GDP: 4.9%) until 2000. According to the newly introduced service sector statistics (for 2000), firms in the East German enterprise related services have on average 9 employes, and thus, they are only slightly smaller than enterprises in West-Germany. Much bigger differences appear with respect to the average sales and productivity (60% or 45%). Various explanations exist. One major reason obviously is, that enterprises in East-Germany make smaller sales because of the clearly smaller size of enterprises which demand these services. Furthermore the smaller earning power of services demanding enterprises, differences in the branch structur of enterprise related services, and administrative regulations for prices play a role.
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On the stability of the banking systems in the Czech Republic, Poland and Hungary
Werner Gnoth
Wirtschaft im Wandel,
No. 11,
2003
Abstract
The EU countries are interested in stable banking systems of candidate countries, because any kind of instability of the financial sector could have serious consequences to the financial and exchange rate system of the whole Community. In the article the state of stability of the banking systems is analyzed, based on several important indicators. At present the banking systems of candidate countries still look fairly stable: weak competition among the banks, a high inflation rate and a low intermediation rate in terms of total assets / GDP have enabled banks still to reach a sufficient net interest yield. So they have been able to stand a relatively high share of non- performing loans and also a relatively high amount of foreign exchange indebtedness. In order to ensure a problem-free integration of the banking systems of the candidate countries in the EU they must still meet several conditions. They need to widen and refine the supply of services and to lower the share of non-performing loans, mainly in the Czech Republic and Poland. The foreign exchange indebtedness of the banking and enterprises domains in Poland and Hungary needs to be restricted. Successful integration in EU competition requires in general increase in the banks own capital.
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On the presence of important growth factors in German regions along the border with Poland
Gerhard Heimpold
Wirtschaft im Wandel,
No. 7,
2003
Abstract
The German regions bordering on Poland are regarded as economically weak. Prior to the EU enlargement there was great uncertainty about the economic prospects of these regions. Against this background this contribution tries to shed some light on this debate about the future of the border regions. The empirical research shows two different findings: Firstly, the border space is not a homogeneous one. Rather, certain sub-regions show strengths – for instance the university towns in terms of the availability of human capital and of service industries. Other districts are remarkable for their great share of employees in the manufacturing sector as well as for their exceptionally high industrial investment. Secondly, the border regions show an endowment with essential growth determinants which is often below East Germany as a whole. But this is the case in many other East German regions too. The East-West disparities turn out to be much more serious than the intra-East German disparities.
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EU Eastern Enlargement and Structural Change: Specialization Patterns in Accession Countries and Economic Dynamics in the Single Market
Albrecht Kauffmann, P. J. J. Welfens, A. Jungmittag, C. Schumann
Diskussionsbeiträge des Europäischen Instituts für Internationale Wirtschaftsbeziehungen (EIIW), Bergische Universität Wuppertal, Nr. 106,
No. 106,
2003
Abstract
This paper analyses key issues of structural change and specialization patterns in the economies of an enlarged European Union. In all transition countries we observe a shift from the agricultural and industrial sector towards the service sector in terms of employment and productivity; however, in some countries a reindustrialisation drives is observed in a late transition stage. While some countries namely the Czech Republic, Hungary, Slovakia, Poland, Estonia and Slovenia, have improved their productivity especially in medium-technology-intensive industries and may advance on the technological ladder, others remain unchanged and seem to get locked in labour-intensive industrial sectors. In the context of EU-enlargement, we expect trade creation – going along with a rise of intra-industry trade – and higher FDI-activities. Countries will have to adjust along the logic of comparative advantage, however, technological upgrading and human capital formation are fields in which government can stimulate the direction of comparative advantage. According to the Gerschenkron-hypothesis the accession countries have an “advantage of backwardness. Since accession countries have a low R&D-GDP ratio in the early transition stage rising government expenditures on research and development plus higher education is crucial. We expect the EU-15 countries in general to benefit from enlargement but gains will be asymmetric across countries: economic geography matters. Austria, Germany, the Scandinavian countries, the Netherlands, Italy and France are likely to profit more than the other members of EU-15. Germany and Austria additionally play a particularly crucial role as origins of FDI. Future research should focus on the speed and the scope of structural adjustment.
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Direct investments in Central and Eastern European acceding countries: Repercussions for the German labor market?
Constanze Dey
Wirtschaft im Wandel,
No. 4,
2003
Abstract
In the light of the high unemployment in the Germany we ask whether German FDI to the CEEC is motivated mainly by cost differentials and takes the form of vertical investment which leads to an increased pressure on blue collar jobs in Germany. The analysis shows that German direct investment abroad is motivated both by reasons of market access and by cost differentials. About 60 % of all German FDI is directed toward the service sector. Here, no negative impact on the German labour market is to be expected. About 40 % of total German FDI may partly be motivated by cost advantages and lead to outsourcing. In the three most important CEEC recipient countries (Poland, Czech Republic and Hungary) about half of all FDI is directed toward the manufacturing industries (chemical industry and automobile industry in particular). This supports the hypothesis that vertical investment to these CEECs has been directed towards sectors that display cost advantages (i.e. low labour costs) which results in a decrease of the number of blue collar jobs and their respectives wages.
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A revised theory of contestable markets : applied on the German telecommunication sector
Christian Growitsch, Thomas Wein
External Publications,
No. 275,
2002
Abstract
Despite the scepticism raised by the German Monopoly Commission our analysis shows that the revised theory of contestable markets can be applied to the telecommunications market better than expected. The original contestable market theory implied three assumptions necessary to be satisfied to establish potential competition: Free market entry, market exit is possible without any costs, and the price adjustment lag exceeds the entry lag. Our analysis shows that if the incumbent reduces its prices slowly (high adjustment lag) and the market entry can be performed quickly (low entry lag), a new competitor will be able to earn back sunk costs. Therefore it is not necessary that all three conditions are satisfied for potential competition to exist. We applied the ‘revised’ contestable market theory to the German telecommunication market and have been able to clearly identify the value added stages in which regulation is required. Under the present conditions local loops - which can be determined as natural monopolies - are not contestable due to sunk costs, high entry lags expected and a probable short price adjustment lag. Local loops can be identified as monopolistic bottlenecks therefore. Regional and local connection networks should also be regulated because a high entry lag and a low price adjustment lag have to be expected as well as current competition does not exist today. The national connection network shows current competition between several network providers; hence regulation can be abolished in this field. Assumed that network access is regulated, services can be supplied by several competing firms.
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