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quickly with West Germany, mainly because the capital stock was modernised and expanded. Convergence, however, has almost come …
Persistent link: https://www.econbiz.de/10011821514
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...
Persistent link: https://www.econbiz.de/10010316360