No Place like Home? Location choice and firm survival after forced relocation in the German machine tool industry

Guido Buenstorf and Christina Guenther

No 07-16, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: We study location choices and firm performance in the German machine tool industry, focusing on the forced migration of East German firms after World War II. Our analysis of location choices supports earlier findings that industry agglomerations attract further entrants. Relocating firms outperformed entrants that possessed no prior industry experience; apparently were able to build on their prewar capabilities. We find no evidence suggesting that firm performance benefited from agglomeration effects.

Keywords: Capabilities; agglomeration economies; location choice; firm survival; machine tool industry (search for similar items in EconPapers)
JEL-codes: L20 R20 R30 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-geo, nep-his and nep-ure
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Citations: View citations in EconPapers (6)

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Working Paper: No place like home? Location choice and firm survival after forced relocation in the German machine tool industry (2007)
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