In the official statistics there are some gaps concerning up to date investment data for Eastern Germany. The purpose of this study was to fill these gaps and to estimate in-vestment data on a disaggregated level for Eastern Germany up to the year 2003.
The framework provide the ifo investment matrices which differentiate between a num-ber of industries and investment categories. The data used to fill the matrix cells are taken from official statistics, the ifo investment surveys and enterprise reports. The con-sistency problem can be overcome by the matrix frame.
Official statistics, ifo investment survey, enterprise reports.
By the end of 2003 roughly € 1100 bn. will have been invested in Eastern Germany since 1991. With the aim of creating a competitive capital stock, double-digit growth rates were achieved until 1994. Afterwards capital expenditure growth fell below the west German level. However, data from the most recent years show that at least in the manufacturing industry of Eastern Germany the downward trend seems to have bot-tomed out. Due to locational advantages investment in machinery and equipment in 2003 experienced a slight recovery in contrast to the ongoing cyclical downturn in the rest of Germany.
Langmantel, Erich (2004), "Investitionen: Aufholprozess in den neuen Bundesländern vorerst zu Ende", ifo Schnelldienst 57 (07), 37-40.
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