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DIME » Working Papers » Ral3 » No Place Like Home? Location choice and firm survival after forced relocation in the German machine tool industry

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

Submitted by Bart Verspagen on 12 September, 2007 - 11:45.

Number: 
2007-11
Author(s): 
Guido Buenstorf, MPI
Christina Guenther, MPI
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.
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BuenstorfWP2007-11.pdf167.23 KB
  • RAL3
  • WP32
  • agglomeration economies
  • Capabilities
  • firm survival
  • location choice
  • machine tool industry
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