Germany was divided after World War II, many firms in the machine tool industry fled the Soviet occupied zone to prevent … expropriation. We show that the regional location decisions of these firms upon moving to western Germany were driven by non …

explaining the relative East Germany-West Germany performance during the post-World War II era. We argue that previous work was … prospects of catching up with West Germany during the post-reunification era. We show, first, that the rates of technical change … account for the fact that East Germany was not the socialist showcase for which it was frequently taken before German …