The paper presents an error-correction model of factor demand and output, analysing the effects of a change in relative factor prices on investment, employment and output in the eastern German manufacturing sector. The principal aim is twofold: first, to examine if the large amounts of capital...

In a transforming economy there is a common legacy of most companies: their low competitiveness as the result of an obsolete capital stock and overmanning, insufficient product quality that does not satisfy demand, distorted specialization patterns, high and partly ill-designed integration,...

In recent years after the beginning of the transition process, firms in Central and Eastern European countries have been trying hard to find access to international markets and production chains. Rapidly changing institutional, technological and demand conditions together with decades of...

Economic re-integration after a long period of separation among countries with different levels of development is expected to start in border regions. Enterprises along the borderline can gain a rent due to low transport and transaction costs. They benefit from the fortunate opportunity of...

Seven years after the transition from plan to market, it is hard to summon up much enthusiasm for the results of active restructuring of the eastern German economy. Although companies have made considerable efforts to reach the efficiency level of their western German counterparts, the gap is...

Economic policy interventions of a scale as effected in eastern Germany can be expected to have a significant impact on the economy, which may be in accordance with the objectives of the policy measures or manifest itself in distortions of several kinds. This paper analyzes the structural...

Die wirtschaftliche Entwicklung in den neuen Ländern ist im Begriff, sich immer mehr auszudifferenzieren. Standorte, die im Windschatten der Wachstumsknoten liegen, haben dabei das Nachsehen. Der Nordosten Brandenburgs ist einer dieser Standorte. Um zu einer Arbeitsteilung mit den benachbarten...