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

Guido Buenstorf () and Christina Guenther ()
Additional contact information
Christina Guenther: Max Planck Institute of Economics, Evolutionary Economics Group, Postal: 07745 Jena (Germany)

No 2007-053, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

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 R12 R30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-his and nep-ure
Date: 2007-08-31
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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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Persistent link: http://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-053

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