The big sell: Privatizing East Germany's economy

• 成果类型: Article
• 署名作者: Mergele, Lukas; Hennicke, Moritz; Lubczyk, Moritz
• 署名单位: Leibniz Association; Ifo Institut; University of Munich; Universite Libre de Bruxelles; University of Bremen; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105291
• 发表日期: 2025
• 关键词: Privatization; Firm ownership; labor productivity; German reunification

摘要

Departing from communism, East Germany witnessed history's most extensive privatization program. While the program sparked global interest as a blueprint for economic transformation, its effectiveness remains disputed. Using unique firm-level data, we examine the program's objective to privatize the most competitive firms. We document that firms with higher baseline productivity are more likely to be privatized, yield higher prices, are more often acquired by West Germans, and are more likely to survive 20 years later. Inspecting the inner workings of the privatization agency, we illustrate challenges and lessons for how governments can design and implement industrial policy goals.