East German Science After Communism: Why does Westernization correlate with Productivity

Ho Fai Chan, Vincent Lariviére, Naomi Moy, Ali Onder, Donata Schilling and Benno Torgler
Additional contact information
Vincent Lariviére: University of Montreal
Naomi Moy: Queensland University of Technology
Benno Torgler: Queensland University of Technology

No 2021-09, Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group

Abstract: Using German re-unification as a natural experiment, we analyze the effect of institutional change in the East German academic system on the scientific productivity of East German scientists in the research fields of science, technology, engineering, mathematics, and medicine (STEMM). We find a strong correlation between restructuring of the East German academic system and the productivity of East German scientists. To identify the causal effects that yield this correlation, we investigate to what extent the observed productivity is brought about by efficiency gains and to what extent by reallocation. We analyze difference-in-differences in productivity, collaboration, field switching behavior, and attrition of the treatment and non-treatment groups of East German scientists. We find reallocation between fields or attrition to be the dominant feature that underlies East German scientists’ productivity differences when institutional effects are isolated.

Keywords: Productivity; Peer Effects; Institutions; Competition; Reallocation; East Germany (search for similar items in EconPapers)
JEL-codes: D24 I23 J24 O32 O33 (search for similar items in EconPapers)
Pages: 59
Date: 2021-11-29, Revised 2022-06-30
New Economics Papers: this item is included in nep-eff, nep-his, nep-lab, nep-sog and nep-ure
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Citations: View citations in EconPapers (2)

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