Establishment survival in East and West Germany: A comparative analysis

Daniel Fackler

No 90, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Using a large administrative dataset and methods of survival analysis, I analyze for the period 1994-2008 whether new establishments' survival chances differ between East and West Germany and whether they converged over time. I find that new establishments in East Germany had relatively good survival chances between 1994 and 1997, with no big differences between East and West Germany. In 1998 and 1999 the exit hazard increased strongly in East but not in West Germany, which is likely to be due to a change in the subsidy policy affecting East Germany. Since 2000 the difference in establishments' exit hazard between East and West Germany has become smaller and towards the end of the observation period it is not statistically significant anymore.

Keywords: startups; firm exits; East Germany (search for similar items in EconPapers)
JEL-codes: C41 D22 L2 M13 P27 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-bec, nep-ent and nep-eur
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:90

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