IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/550.html
   My bibliography  Save this paper

Foreign investors' activities in Eastern Germany motivations and strategies

Author

Listed:
  • Sander, Birgit

Abstract

The paper analyses foreign investors' activities in East Germany in the context of privatization. Based on FDI theories it attempts to explore their motivations and strategies by investigating their home countries as well as their target industries. About 5 p.c. of all privatized enterprises have been acquired by foreigners. Their share in planned investment and planned employment results to be markedly larger. Foreign investors are predominantly originating from those countries which have longstanding economic relations with West Germany. The main part of foreign investment goes into manufacturing industries; into booming as well as into ailing industries. The availability of wellqualified labour appears to be of major importance for nearly all investments while contracting favourable terms of sale and taking advantage of public investment support are especially important for commitments in ailing industries. Germany's EC-membership generates further incentives such as to take advantage of the EC regulatory framework. Using East German production sites as bridgeheads to serve markets in Central Eastern Europe has been a strong motivation in the beginning but meanwhile has lost importance. Comparing foreign to West German investors, by and large their decisions seem to be driven by the same determinants.

Suggested Citation

  • Sander, Birgit, 1992. "Foreign investors' activities in Eastern Germany motivations and strategies," Kiel Working Papers 550, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:550
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/620/1/042680565.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Siebert, Horst, 1990. "The economic integration of Germany," Kiel Discussion Papers 160, Kiel Institute for the World Economy (IfW Kiel).
    2. Schmidt, Klaus-Dieter, 1992. "Ownership structure and enterprise performance in the transition process: Evidence from Eastern Germany," Kiel Working Papers 530, Kiel Institute for the World Economy (IfW Kiel).
    3. Krüger, Reinald, 1992. "Privatisierung ostdeutscher Unternehmen in EG-koordinierten Krisenbranchen," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 72(11), pages 594-601.
    4. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(4), pages 739-773, December.
    5. Alan Rugman, 1980. "Internalization as a general theory of foreign direct investment: A re-appraisal of the literature," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 365-379, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schmidt, Klaus-Dieter, 1994. "Treuhandanstalt and investment acquisitions: How to ensure that contracts are kept?," Kiel Working Papers 632, Kiel Institute for the World Economy (IfW Kiel).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Borsos-Torstila, Julianna, . "The Determinants of Foreign Direct Investment Operations of Finnish MNCs in Transition Economies 1990-1995," ETLA A, The Research Institute of the Finnish Economy, number 28, June.
    2. Manamba EPAPHRA & John MASSAWE, 2017. "The Effect of Corruption on Foreign Direct Investment: A Panel Data Study," Turkish Economic Review, KSP Journals, vol. 4(1), pages 19-54, March.
    3. Ele Reiljan, 2001. "Determinants of foreign direct investment inflows in Estonia," University of Tartu - Faculty of Economics and Business Administration, in: Foreign Direct Investments in the Estonian Economy, volume 9, chapter 2, pages 31-90, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    4. Andrey V. Korytin, 2020. "Tax Burden Influence on the Foreign Direct Investment Distribution by Economic Industries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 68-86, February.
    5. Siebert, Horst, 1992. "Real adjustment in the transformation process: Risk factors in East Germany," Open Access Publications from Kiel Institute for the World Economy 1915, Kiel Institute for the World Economy (IfW Kiel).
    6. Sobel, Andrew C., 2002. "State institutions, risk, and lending in global capital markets," International Business Review, Elsevier, vol. 11(6), pages 725-752, December.
    7. Cantner, Uwe & Günther, Jutta & Hassan, Sohaib Shahzad & Jindra, Björn, 2013. "Outward FDI from the Central and Eastern European Transition Economies – A Discrete Choice Analysis of Location Choice within the European Union," MPRA Paper 51817, University Library of Munich, Germany, revised 04 Jun 2013.
    8. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
    9. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    10. George Anastassopoulos, 2003. "MNE subsidiaries versus domestic enterprises: an analysis of their ownership and location-specific advantages," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1505-1514.
    11. Mann, Catherine L., 1993. "Determinants of Japanese direct investment in US manufacturing industries," Journal of International Money and Finance, Elsevier, vol. 12(5), pages 523-541, October.
    12. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    13. Nguyen Phuc Canh & Nguyen Thanh Binh & Su Dinh Thanh & Christophe Schinckus, 2020. "Determinants of foreign direct investment inflows: The role of economic policy uncertainty," International Economics, CEPII research center, issue 161, pages 159-172.
    14. Ramstetter, Eric D., 2016. "Multinational Enterprise Growth and Vietnam's Employment and Wages in Manufacturing and Trade Industries: Did Takeovers Play a Role?," AGI Working Paper Series 2016-05, Asian Growth Research Institute.
    15. Magdalena Owczarczuk, 2020. "Institutional competitiveness of Central and Eastern European countries and the inflow of foreign direct investments," Catallaxy, Institute of Economic Research, vol. 5(2), pages 87-96, December.
    16. Husam Rjoub & Mehmet Aga & Ahmad Abu Alrub & Murad Bein, 2017. "Financial Reforms and Determinants of FDI: Evidence from Landlocked Countries in Sub-Saharan Africa," Economies, MDPI, vol. 5(1), pages 1-12, January.
    17. Ramstetter, Eric D., 2017. "Foreign Workers, Foreign Multinationals, and Wages after Controlling for Occupation and Sex in Malaysia’s Manufacturing Plants during the mid-1990s," AGI Working Paper Series 2017-13, Asian Growth Research Institute.
    18. Schmidt, Klaus-Dieter, 1996. "German unification: A progress report," Kiel Working Papers 722, Kiel Institute for the World Economy (IfW Kiel).
    19. Siebert, Horst, 1991. "Die Integration Osteuropas in die Weltwirtschaft," Kiel Working Papers 491, Kiel Institute for the World Economy (IfW Kiel).
    20. Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does it Matter?," Journal of Economic Surveys, Wiley Blackwell, vol. 18(4), pages 483-514, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:550. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.