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The impact of the 2004 EU enlargement on the performance of service enterprises in Germany’s eastern border region

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Listed:
  • Nils Braakmann

    (Leuphana University Lüneburg)

  • Alexander Vogel

    (Leuphana University Lüneburg)

Abstract

We consider the impact of the 2004 EU enlargement on enterprise performance and the exporting behavior of German service enterprises in Germany’s eastern border region. Our results from regression adjusted difference-in-differences estimators combined with matching and panel data from official statistics suggest that the EU enlargement had a negative impact on the turnover and export intensity of large enterprises in the border region. For small enterprises, we find an annual increase in turnover by 2.3% in 2004 and an annual decrease in profitability by 1.5 and 1.9 percentage points in 2004 and 2005, respectively.

Suggested Citation

  • Nils Braakmann & Alexander Vogel, 2010. "The impact of the 2004 EU enlargement on the performance of service enterprises in Germany’s eastern border region," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 75-89, April.
    • Handle: RePEc:spr:weltar:v:146:y:2010:i:1:d:10.1007_s10290-009-0042-1
    DOI: 10.1007/s10290-009-0042-1
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    References listed on IDEAS

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    1. Holger Görg & Michael Henry & Eric Strobl, 2008. "Grant Support and Exporting Activity," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 168-174, February.
    2. Alexander Vogel, 2009. "The German Business Services Statistics Panel 2003 to 2007," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(3), pages 515-522.
    3. Hartmut Egger & Peter Egger, 2002. "How international outsourcing drives up Eastern European wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 83-96, March.
    4. Wolfgang Franz & Viktor Steiner, 2000. "Wages in the East German Transition Process: Facts and Explanations," German Economic Review, Verein für Socialpolitik, vol. 1(3), pages 241-269, August.
    5. Henning Klodt, 2000. "Industrial Policy and the East German Productivity Puzzle," German Economic Review, Verein für Socialpolitik, vol. 1(3), pages 315-333, August.
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    7. Dirk Czarnitzki, 2005. "The Extent and Evolution of Productivity Deficiency in Eastern Germany," Journal of Productivity Analysis, Springer, vol. 24(2), pages 211-231, October.
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    More about this item

    Keywords

    EU enlargement; Enterprise performance; Exports;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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