Innovation cooperation in East Germany - only a half-way success?
Jutta Günther
IWH Discussion Papers,
No. 170,
2003
Abstract
The paper focuses on the question whether enterprises that engage in innovation cooperation with external partners are more innovative and thus more productive than non-cooperating firms. A comparison between East and West Germany is being made. It shows that cooperating enterprises in East and West Germany are indeed more innovative than non-cooperating firms, but there remains a clear productivity gap between East and West German cooperating firms. Furthermore, in East Germany - different from West Germany - non-cooperating firms are even more productive than cooperating firms.
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Subjective assessments of life situation in East and West Germany still differ
Cornelia Lang
Wirtschaft im Wandel,
No. 11,
2002
Abstract
Die rasche Angleichung der ostdeutschen Lebensverhältnisse an das hohe westdeutsche Niveau war eine der wesentlichen Erwartungen an den Prozess der deutschen Wiedervereinigung. Inzwischen ist Ernüchterung eingetreten und es hat sich die Erkenntnis verbreitet, dass das Zusammenwachsen der ost- und westdeutschen Bundesländer ein längerfristiger Prozess ist. Gegenwärtig bestehen noch deutliche Unterschiede in der Einschätzung der persönlichen und allgemeinen wirtschaftlichen Lage durch Ostdeutsche und Westdeutsche, wie Umfrageergebnisse zeigen. Die Differenzen in den Wahrnehmungen manifestieren sich aber nicht in einer Ablehnung der Bundesrepublik und ihrer Institutionen durch die ostdeutsche Bevölkerung.
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Current Trends - Differences in real savings despite almost equal savings ratio in East and West Germany
Ruth Grunert
Wirtschaft im Wandel,
No. 3,
2002
Abstract
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Intra-industry trade between European Union and Transition Economies. Does income distribution matter?
Hubert Gabrisch, Maria Luigia Segnana
IWH Discussion Papers,
No. 155,
2002
Abstract
EU-TE trade is increasingly characterised by intra-industry trade. For some countries (Czech Republic), the share of intra-industry trade in total trade with the EU approaches 60 percent. The decomposition of intra-industry trade into horizontal and vertical shares reveals overwhelming vertical structures with strong quality advantages for the EU and shrinking quality advantages for TE countries wherever trade has been liberalised. Empirical research on factors determining this structure in an EU-TE framework has lagged theoretical and empirical research on horizontal trade and vertical trade in other regions of the world. The main objective of this paper is, therefore, to contribute to the ongoing debate over EU-TE trade structures, by offering an explanation of intra-industry trade. We utilize a cross-country approach in which relative wage differences and country size play a leading role. In addition, as implied by a model of the productquality
cycle, we examine income distribution factors as determinates of the emerging
EU-TE structure of trade flows. Using OLS regressions, we find first, that relative
differences in wages (per capita income) and country size explain intra-industry trade, when trade is vertical and completely liberalized and second, that cross country differences in income distribution play no explanatory role. We conclude that if increasing wage differences resulted from an increasing productivity gap between highquality and low-quality industries, then vertical structures will, over the long-term create significant barriers for the increase in TE incomes and lowering EU-TE income differentials.
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Local Taxes and Capital Structure Choice
Reint E. Gropp
International Tax and Public Finance,
No. 1,
2002
Abstract
This paper investigates the question of taxation and capital structure choice in Germany. Germany represents an excellent case study for investigating the question of whether and to what extent taxes influence the debt-equity decision of firms, because the relative tax burdens on debt and equity vary greatly across communities. German communities levy local taxes on profits and long-term debt payments in addition to personal and corporate taxes on the federal level. A stylized model is presented incorporating these taxes. The model shows that local taxes create substantial incentives for firms to use debt financing. Furthermore, the paper empirically investigates the effect of local business taxes on the share of debt used to finance incremental investments by German firms. I find that local taxes significantly influence the capital structure choice of firms, controlling for a large number of other factors. In an extensive sensitivity analysis the tax effect are found to be robust across several different specifications.
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Korean unification and banking system - An analysis in view of German experiences and Korean differences
Ralf Müller
IWH Discussion Papers,
No. 139,
2001
Abstract
One of the reforms that have to be launched in a future unification process in Korea, which seems possible after the political negotiations last year, is the transformation of the North Korean banking system. The question arises whether Korea could profit from the German experience where banking transformation was one of the rather few success stories in unification. In 1990 the East German banking transformation was achieved relatively fast and uncomplicated due to considerable direct investments of the West German banks compounded with state guarantees for bad loans resulting from the credit business with existing GDR-corporations. Unfortunately, South Korea currently lacks some major prerequesites that contributed to the German banking unification, among them – and probably the most important one – is the lack of a sound and efficient banking
system that could become active in the North. Consequently, depending on the circumstances of a future Korean unification either a more gradual process is recommended or, if inner-Korean migration requires a more dynamic transition, considerable investment by foreign banks and assistance from international organisations is recommended.
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A glimpse on sectoral convergence of productivity levels
Gerald Müller
IWH Discussion Papers,
No. 133,
2001
Abstract
This paper examines the presence of sectoral convergence of labor productivity between 14 OECD countries. Using the OECD International Sectoral Data Base (ISDB), the paper looks at the developments within 12 distinct sectors during the period 1970-1995. The change of the coefficients of variance suggests that there is strong sectoral convergence within most service sectors while the evidence of convergence for Manufacturing as well as for Communication is rather weak. These findings are in line with most studies undertaken on this subject so far. It is concluded that economic theories at hand to explain growth and convergence (or divergence respectively) are of different importance for the sectors concerned. While models of the New Growth Theory seemed to be useful to explain growth mechanisms within Manufacturing and Communication, traditional models seemed to apply to most other sectors.
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Differences in productivity and convergence of economic regions – The example of the New Länder -
Gerald Müller, Joachim Ragnitz, Anita Wölfl
IWH-Sonderhefte,
No. 3,
2001
Abstract
Auch im Jahre 2000 liegt das Produktivitätsniveau, das im Durchschnitt der ostdeutschen Wirtschaft erreicht wird, bei nur etwa zwei Dritteln des westdeutschen Wertes. Zwar gibt es eine erhebliche Differenzierung nach Unternehmen, nach Branchen und nach Regionen. Im Ganzen stellen die neuen Länder aber noch immer eine strukturschwache Region dar, und es ist offenkundig, dass das Ziel einer Angleichung der Pro-Kopf-Einkommen an das Westniveau kurzfristig nicht erreicht werden kann.
Die Frage, weshalb das Produktivitätsniveau in der ostdeutschen Wirtschaft weiterhin deutlich niedriger liegt als in Westdeutschland, ist auch 10 Jahre nach der deutschen Vereinigung noch nicht abschließend geklärt. In der Literatur gibt es zwar inzwischen eine ganze Reihe unterschiedlich gut begründeter Hypothesen, mit denen der Produktivitätsrückstand auf verschiedene betriebsinterne und -externe Faktoren zurückgeführt werden soll. Eine umfassende Gesamtdarstellung fehlt aber bislang noch. Auch die Frage, welche Schlussfolgerungen angesichts des anhaltend niedrigen Produktivitätsniveaus für den weiteren Konvergenzprozess zu ziehen sind, ist noch nicht überzeugend beantwortet.
Angesichts dieser Forschungsdefizite hat das Bundesministerium für Wirtschaft und Technologie mit Schreiben vom 29. April 1998 das Institut für Wirtschaftsforschung Halle beauftragt, im Rahmen der sektoralen Strukturberichterstattung das Thema „Produktivitätsunterschiede und Konvergenz von Wirtschaftsräumen – Das Beispiel der neuen Länder“ zu bearbeiten. Das IWH legt hiermit den Abschlussbericht zu diesem Projekt vor.
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Cooperation Between Different Levels of Government and the Efficient Provision of Public Goods: The Case of Public Assistance for the Unemployed in Germany
Martin T. W. Rosenfeld
IWH Discussion Papers,
No. 135,
2001
Abstract
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Differences in the economic capability of regions - a typology for East Germany and Poland
Franz Barjak
IWH Discussion Papers,
No. 121,
2000
Abstract
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