25 Years IWH

Professor Dr Udo Ludwig

Professor Dr Udo Ludwig
Current Position

since 1/92

Economist in the Department of Macroeconomics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • business cycle research and research on economic growth in a national and regional context
  • input-output analyses
  • studies on structural change of Germany's economy after 1945 - a comparison between East Germany's centrally planned economy and West Germany's market economy

Your contact

Professor Dr Udo Ludwig
Professor Dr Udo Ludwig
Mitglied - Department Macroeconomics
Send Message +49 345 7753-754

Publications

Can R&D Subsidies Counteract the Economic Crisis? – Macroeconomic Effects in Germany

Hans-Ulrich Brautzsch Jutta Günther Brigitte Loose Udo Ludwig Nicole Nulsch

in: Research Policy , No. 3, 2015

Abstract

During the economic crisis of 2008 and 2009, governments in Europe stabilized their economies by means of fiscal policy. After decades of absence, deficit spending was used to counteract the heavy decline in demand. In Germany, public spending went partially into R&D subsidies in favor of small and medium sized enterprises. Applying the standard open input–output model, the paper analyzes the macroeconomic effects of R&D subsidies on employment and production in the business cycle. Findings in the form of backward multipliers suggest that R&D subsidies have stimulated a substantial leverage effect. Almost two thirds of the costs of R&D projects are covered by the enterprises themselves. Overall, a subsidized R&D program results in a production, value added and employment effect that amounts to at least twice the initial financing. Overall, the R&D program counteracts the decline of GDP by 0.5% in the year 2009. In the year 2010 the effects are already procyclical since the German economy recovered quickly. Compared to the strongly discussed alternative uses of subsidies for private consumption, R&D spending is more effective.

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International Fragmentation of Production and the Labour Input into Germany’s Exports – An Input-Output-analysis

Hans-Ulrich Brautzsch Udo Ludwig

in: Structural Change and Economic Dynamics , 2011

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Gunnar Myrdal an the Persistence of Germany’s Regional Inequality

John B. Hall Udo Ludwig

in: Journal of Economic Issues , 2009

Abstract

This paper seeks to establish that contributions to regional theory advanced by Gunnar Myrdal exhibit high levels of explanatory power when clarifying challenges facing Germany’s eastern region since the fall oft the Berlin Wall. Myrdal’s institutionalist contribution is contrasted with the „convergence hypothesis“ advanced by R. Barro and X. Sala-i-Marin. Challenged is their prediction that Germany’s eastern region would experience relatively higher annual rates of per capita output growth, and that levels of per capita output would converge between the eastern and western regions over time. Myrdal’s approach is argued superior as it allows for considering backwash and spread effects within a framework of circular and cumulative causation, emerging between Germany’s western and eastern regions.

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Working Papers

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International Fragmentation of Production and the Labour Input into Germany’s Exports – An Input-Output-analysis

Hans-Ulrich Brautzsch Udo Ludwig

in: IWH Discussion Papers , No. 14, 2011

Abstract

The import penetration of exports has become a topic of public debate, particularly in the context of Germany’s position as one of the world’s leading exporters. The growth in the volume of intermediate products purchased from abroad for subsequent processing into export goods in Germany seems to be undermining the importance of exports as a driver of domestic production and employment. The gains that arise from an increase in exports seem to have been offset by the losses caused by the crowding out of local production by imports. Empirical evidence on the impact of this international integration of the goods market on the German labour market is ambiguous. Short-term negative effects on employment are claimed to be offset by the long-term benefit that the jobs lost in the short run will eventually be replaced by higher-skilled jobs with better perspectives. Against this background, the following hypothesis is tested empirically: Germany is poor in natural resources, but rich in skilled labour. In line with the Heckscher- Ohlin theory, Germany should therefore specialize in the production of export goods and services that are relatively intensive in these factors and should import those goods and services that are relatively intensive in unskilled labour. The empirical part of the paper deals with the extent of the German export penetration by imports. At first, it analyses by what ways imports are affecting the exports directly and indirectly and shows the consequences of import penetration of exports for the national output and employment. Secondly, consequences for employment are split in different skill types of labour. These issues are discussed with the standard open static inputoutput- model. The data base is a time series of official input-output tables. The employment effects for Germany divided by skill types of labour are investigated using skill matrices generated by the authors.

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Vierteljährliche Entstehungsrechnung des Bruttoinlandsprodukts für Ostdeutschland: Sektorale Bruttowertschöpfung

Hans-Ulrich Brautzsch Udo Ludwig

in: IWH Discussion Papers , No. 164, 2002

Abstract

Data regarding the development of macroeconomic production and employment are essential for the political decision process. Especially timely available information is a critical issue. Reliable short run data are not reported for East Germany yet. Because of data limitations for the past quarterly sectoral series of production and employment are derived from annual national accounts data using a set of indicators by branches. Indicators have been tested and cover working hours and sales, among others. For the period from 1992 to 2001 quarterly series for sectoral GDP are derived. A flash estimator for the overall macroeconomic performance is obtained through aggregation.

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Der Exportsektor im ostdeutschen Verarbeitenden Gewerbe und seine Bedeutung für das betriebliche Wachstum - eine Auswertung von Mikrodaten der amtlichen Statistik und einer IWH-Industrieumfrage -

Brigitte Loose Udo Ludwig

in: IWH Discussion Papers , No. 169, 2003

Abstract

This paper deals with the presence of East German manufacturers in foreign product markets. The following questions are discussed: Which factories sell their products abroad? What influences the export activities? Hypotheses are built on the basis of different trade theories, such as the relative position of the enterprises in their home market, the cumulation of learning effects in production and sales, the saturation of the domestic market and others. Individual data sets from industrial surveys for 1995 and 2000 are used to reveal the relationship between the company’s technical as well as institutional characteristics and their participation in export activities. Bivariate and multivariate approaches are applied. Additionally, a sample of enterprises has been asked to assess their export activities.

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