Wirkungen der Investitionsförderung in Ostdeutschland

Investment in East Germany is heavily subsidized. Econometric estimates based on a treatment approach show that the level of investment is significantly higher in firms being supported by state aid. Nevertheless, capital productivity is lower in East Germany, indicating a misallocation of capital. Additionally, there are negative effects in West Germany due to negative crowding-out effects. Therefore state aid in East Germany should be reduced in the medium run.

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Year of publication:	2003-12
Authors:	Ragnitz, Joachim
Institutions:	Institut für Wirtschaftsforschung Halle (IWH)

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Extent:	application/pdf
Series:	IWH Discussion Papers.
Type of publication:	Book / Working Paper
Language:	German
Notes:	Number 186
Classification:	O52 - Europe ; R11 - Regional Economic Activity: Growth, Development, and Changes ; R38 - Government Policy ; R58 - Regional Development Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005232579