Still different after all these years: Extensive and intensive margins of exports in East and West German manufacturing enterprises
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Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2014. (Working Paper Series in Economics; No. 313).
Research output: Working paper › Working papers
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TY - UNPB
T1 - Still different after all these years
T2 - Extensive and intensive margins of exports in East and West German manufacturing enterprises
AU - Wagner, Joachim
PY - 2014
Y1 - 2014
N2 - This paper uses a new tailor-made data set to investigate the differences in extensive and intensive margins of exports in manufacturing firms from East Germany and West Germany. It documents that these margins do still differ in 2010, 20 years after the re-unification of Germany. West German firms outperform East German firms at all four margins of exports – they have a larger propensity to export, export a larger share of total sales, export more goods and export to a larger number of countries. All these differences are large from an economic point of view. A decomposition analysis shows that in 2010 between 59 percent and 78 percent of the difference in margins can be explained by differences in firm characteristics. Most important here is the higher human capital intensity and (to a much lesser extent) the larger share of old firms in West Germany compared to East Germany.
AB - This paper uses a new tailor-made data set to investigate the differences in extensive and intensive margins of exports in manufacturing firms from East Germany and West Germany. It documents that these margins do still differ in 2010, 20 years after the re-unification of Germany. West German firms outperform East German firms at all four margins of exports – they have a larger propensity to export, export a larger share of total sales, export more goods and export to a larger number of countries. All these differences are large from an economic point of view. A decomposition analysis shows that in 2010 between 59 percent and 78 percent of the difference in margins can be explained by differences in firm characteristics. Most important here is the higher human capital intensity and (to a much lesser extent) the larger share of old firms in West Germany compared to East Germany.
KW - Economics
KW - Export margins
KW - East Germany
KW - West Germany
KW - decomposition analysis
M3 - Working papers
T3 - Working Paper Series in Economics
BT - Still different after all these years
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -