This research assesses the firm-specific reasons for lower productivity levels between West and East German firms. The study is based on a unique data-base generated by field work in the two particularly important sectors of machinery manufacturers and furniture manufacturers. Our results...

Recent research has revealed enormous variation in performance and growth among firms, which both drives and is driven by large reallocations of inputs and outputs across firms (churning) within industries and markets. These differences in firm-level outcomes and the associated turnover of firms...