The Macroeconomic Development of the Soviet Occupied Zone/GDR (1949 until 1989) – a Balance

Applying the growth accounting model the impact of labor and capital inputs as well as of the technological progress on GDP growth in different historical periods oft Eastern Germany is estimated. The main finding is the failure of the central planning model to modernize the economy. The total factor productivity dominated the economic growth only during the economic reforms in the second halve of the 60ies.

19. December 2017

Authors Udo Ludwig

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