March 2007

IZA DP No. 2656: Why More West than East German Firms Export

published in: International Economics and Economic Policy, 2008, 5 (4), 363-370

Using unique new data and a recently introduced non-linear decomposition technique this paper shows that the huge difference in the propensity to export between West and East German plants is to a large part due to differences in firm size and human capital intensity.