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A matched plant comparison of productivity in East and West Germany: Transition to the market economy

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  • Hitchens, D. M. W. N.
  • Birnie, J. E.
  • Wagner, K.

Abstract

This study compares east German productivity with that of west Germany within the newly unified Germany. It does so by comparing in detail the performance of a sample of 32 plants in east Germany with 34 matching plants in west Germany. The results refer mainly to 1990 and 1991 but some less formally based results for 1993 are also given. Possible reasons for productivity differences are examined. The results provide important conclusions on the role of machinery and training in productivity improvement. The research is complimentary to more macro-orientated and statistically based studies of economic performance of eastern European countries.

Suggested Citation

  • Hitchens, D. M. W. N. & Birnie, J. E. & Wagner, K., 1996. "A matched plant comparison of productivity in East and West Germany: Transition to the market economy," Omega, Elsevier, vol. 24(3), pages 321-335, June.
    • Handle: RePEc:eee:jomega:v:24:y:1996:i:3:p:321-335
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    References listed on IDEAS

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    2. Kravis, Irving B, 1976. "A Survey of International Comparisons of Productivity," Economic Journal, Royal Economic Society, vol. 86(341), pages 1-44, March.
    3. A. Daly & D.M.W.N. Hitchens & K. Wagner, 1985. "Productivity, Machinery and Skills in a Sample of British and German Manufacturing Plants," National Institute Economic Review, National Institute of Economic and Social Research, vol. 111(1), pages 48-61, February.
    4. George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
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    6. Hitchens, Dmwn & Wagner, K & Birnie, Je, 1991. "Improving productivity through international exchange visits," Omega, Elsevier, vol. 19(5), pages 361-368.
    7. Carlin, Wendy & Mayer, Colin, 1992. "Restructuring Enterprises in Eastern Europe," CEPR Discussion Papers 700, C.E.P.R. Discussion Papers.
    8. Aghion, Philippe & Blanchard, Olivier & Burgess, Robin, 1994. "The behaviour of state firms in eastern Europe, pre-privatisation," European Economic Review, Elsevier, vol. 38(6), pages 1327-1349, June.
    9. Collier, Irwin L, Jr & Siebert, Horst, 1991. "The Economic Integration of Post-Wall Germany," American Economic Review, American Economic Association, vol. 81(2), pages 196-201, May.
    10. Prais, S J, 1986. "Some International Comparisons of the Age of the Machine-Stock," Journal of Industrial Economics, Wiley Blackwell, vol. 34(3), pages 261-277, March.
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    13. International Monetary Fund, 1990. "German Unification; Economic Issues Occasional Paper No. 75," IMF Occasional Papers 1990/008, International Monetary Fund.
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