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Still different after all these years. Extensive and intensive margins of exports in East and West German manufacturing enterprises

Author

Listed:
  • Joachim Wagner

    (Leuphana University Lueneburg, Germany)

Abstract
This paper uses a new tailor-made data set to investigate the differences in extensive and intensive margins of exports in manufacturing firms from East Germany and West Germany. It documents that these margins do still differ in 2010, 20 years after the re-unification of Germany. West German firms outperform East German firms at all four margins of exports – they have a larger propensity to export, export a larger share of total sales, export more goods and export to a larger number of countries. All these differences are large from an economic point of view. A decomposition analysis shows that in 2010 between 59 percent and 78 percent of the difference in margins can be explained by differences in firm characteristics. Most important here is the higher human capital intensity and (to a much lesser extent) the larger share of old firms in West Germany compared to East Germany.

Suggested Citation

  • Joachim Wagner, 2014. "Still different after all these years. Extensive and intensive margins of exports in East and West German manufacturing enterprises," Working Paper Series in Economics 313, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:313
    as

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    References listed on IDEAS

    as
    1. Horst Raff & Joachim Wagner, 2014. "Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany," The World Economy, Wiley Blackwell, vol. 37(5), pages 579-591, May.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Joachim Wagner, 2016. "Trading Many Goods with Many Countries: Exporters and Importers from German Manufacturing Industries," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 14, pages 455-476, World Scientific Publishing Co. Pte. Ltd..
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    5. Joachim Wagner, 2015. "A Note on Firm Age and the Margins of Exports: First Evidence from Germany," The International Trade Journal, Taylor & Francis Journals, vol. 29(2), pages 93-102, June.
    6. Joachim Wagner, 2012. "Average wage, qualification of the workforce and export performance in German enterprises: evidence from KombiFiD data [Durchschnittslohn, Belegschaftsqualifikation und Exporttätigkeit in deutschen," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 161-170, July.
    7. Joachim Wagner, 2014. "New Data from Official Statistics for Imports and Exports of Goods by German Enterprises," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 134(3), pages 371-378.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    9. Daniel A. Powers & Hirotoshi Yoshioka & Myeong-Su Yun, 2011. "mvdcmp: Multivariate decomposition for nonlinear response models," Stata Journal, StataCorp LP, vol. 11(4), pages 556-576, December.
    10. Joachim Wagner, 2008. "A note on why more West than East German firms export," International Economics and Economic Policy, Springer, vol. 5(4), pages 363-370, December.
    11. Michael Gühne & Gunther Markwardt, 2014. "Lohnunterschiede zwischen Ost- und Westdeutschland: Neue Einsichten," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(03), pages 37-44, June.
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    Cited by:

    1. Joachim Wagner, 2017. "R&D Activities and Extensive Margins of Exports in Manufacturing Enterprises: First Evidence for Germany," The International Trade Journal, Taylor & Francis Journals, vol. 31(3), pages 232-244, May.
    2. João Amador & Luca David Opromolla, 2017. "Trade Margins and Cohorts of Traders in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    3. Milad Abbasiharofteh & Tom Broekel, 2021. "Still in the shadow of the wall? The case of the Berlin biotechnology cluster," Environment and Planning A, , vol. 53(1), pages 73-94, February.
    4. Krenz, Astrid, 2019. "The gender gap in international trade: Female-run firms and the exporter productivity premium," University of Göttingen Working Papers in Economics 368, University of Goettingen, Department of Economics.
    5. Pfeifer Christian & Smolny Werner & Wagner Joachim, 2016. "25 Years of German Reunification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 153-155, March.

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    More about this item

    Keywords

    Export margins; East Germany; West Germany; decomposition analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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