Economic Aspects of German Unification: Expectations, Transition Dynamics and International PerspectivesPaul J. J. Welfens The editor is pleased to present a second edition of Economic Aspects of German Unification which includes new chapters and several postscripts. Almost five years after unification output in the ex-GDR is back to its 1989 level. Due to a massive intra-German resource transfer consumption per capita in eastern Germany has not fallen as much as output and employment which reduced by one-fifth within three years. Given high West German transfers which represented about 5% of West German GDP and more than 50% of East German GDP the fall of industrial output could have been much stronger than had politically been feasible. Hence structural change necessary for productivity growth was dramatic in the ex-GDR where the goods producing sector (manufacturing, mining, energy and construction) strongly changed its proportions; within four years construction almost doubled, and the share of investment goods production reduced by 10 percentage points between 1990 and 1994 and is· now down to 21. 1 %. Mining lost two-thirds of its share in the producing sector which itself was reduced relative to GDP. The share of the services industry increased by 5 percentage points between 1991 and 1994, but with a share of 27. 7% in East Germany's GDP it was still about 9 percentage points lower than in western Germany. By contrast, government accounted for 20. 9% of GDP in eastern Germany, but for only 13. 2% in western Germany. |
Contents
Economic Aspects of German Unification | 1 |
E Macroeconomic Aspects of German Unification | 3 |
Some Initial Observations | 9 |
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Common terms and phrases
agriculture areas assets bank basic Berlin billion DM Bundesbank capital central CMEA CMEA countries Community companies competition costs currency union decline deficit demand Deutsche Deutsche Bundesbank Deutschmark East German economy East Germany Eastern Europe eastern Germany economic employees employment energy enterprises environmental expected exports Federal Republic Figure firms fiscal equalization system fiscal needs fiscal power foreign former GDR German unification Germany's growth important income increase infrastructure Institut für Wirtschaftsforschung integration interest rates investment labor force Land Länder Länder share major manufacturing market economy million monetary old Länder output payments percent percentage Poland political problems ratio reform regional restructuring result revenues sector social socialist Source Soviet Union Statistisches Bundesamt structural change subsidies Table trade transfers transformation transition transport Treuhand Treuhandanstalt turnover tax united Germany USSR wage Welfens West western Wirtschaft workers
References to this book
Economic Transition, Unemployment and Active Labour Market Policy Corinne Nativel Limited preview - 2004 |