Publication overview

Business environment and enterprise behaviour in East Germany compared to West Germany and central Europe

Abstract

This paper examines the institutional differences between the former East and West Germany and four central European transition countries (the Czech Republic, Hungary, Poland and the Slovak Republic). Using enterprise survey data, the paper shows that the quality of institutions in the former East Germany still differs from that in former West Germany. It also finds that enterprises in the transition countries have compensated for institutional deficiencies by focusing on innovation and investment in human capital.