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The impact of the 2004 EU enlargement on the performance of service enterprises in Germany’s eastern border region

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Braakmann, Nils; Vogel, Alexander

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Abstract We consider the impact of the 2004 EU enlargement on enterprise performance and the exporting behavior of German service enterprises in Germany’s eastern border region. Our results from regression adjusted difference-in-differences estimators combined with matching and panel data from official statistics suggest that the EU enlargement had a negative impact on the turnover and export intensity of large enterprises in the border region. For small enterprises, we find an annual increase in turnover by 2.3% in 2004 and an annual decrease in profitability by 1.5 and 1.9 percentage points in 2004 and 2005, respectively.
Keywords eastwards expansion; joining the European Union; performance; service enterprise; Germany; border region
Classification European Politics; Economics
Free Keywords EU enlargement; Enterprise performance; Exports; JEL Classification: F15; L80
Publication Year 2010
Page/Pages p. 75-89
Journal Review of World Economics, 146 (2010) 1
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)