The Manufacturing Sector in East Germany on a Path from De-industrialization to Re-industrialization: Are there Economically Sustainable Structures?
Gerhard Heimpold
Wirtschaft im Wandel,
20 Jahre Deutsche Einheit - Teil 1 -
2009
Abstract
The contribution comprises an analysis how the manufacturing sector in East Germany has developed in the post-transition period after 1990. A set of economic performance indicators is used. The analysis shows a considerable growth of gross value added and productivity. However, the growth of productivity occurred at the expense of employment. On average, in 2008, the East German manufacturing sector reached 4/5th of the productivity level of the West German level. As far as the endowment with growth determinants is concerned, the manufacturing industry in the New German Länder has undertaken considerable efforts to modernize its fixed capital stock. The endowment with human capital measured by the proportion of employees possessing a university degree is as high as in the western part of Germany. However, the investigation reveals a number of deficits, too. Data on Research and Development (R&D) expenditures and R&D staff in the manufacturing sector reveal, on average, lower R&D activities in the East German manufacturing sector. This is resulting from specific structures of the East German manufacturing sector: dominance of small firms, lack of large firms possessing headquarters and conducting own R&D. Complementary, the share of technology-driven industries is lower, and the proportion of labor intensive industries is larger in comparison with the West German manufacturing sector. In addition, an investigation of functional structures of employment reveals a proportion of employment in production functions which is above the West German average, whereas the opposite is the case with the proportion of employment in service functions. For further strengthening the East German manufacturing sector, structural change toward technology-intensive and human capital-intensive economic activities has to be continued.
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New Growth and Poverty Alleviation Strategies for Africa – Institutional and Local Perspectives. African Development Perspectives Yearbook, Vol. 14
Tobias Knedlik, Karl Wohlmuth, Philippe Burger, Achim Gutowski, Mareike Meyn, T. (eds) Urban, Afeikhena Jerome
,
2009
Abstract
The Volume XIV analyses the “New Growth and Poverty Alleviation Strategies for Africa“. Institutional issues and perspectives in designing new growth and poverty alleviation strategies are considered in various case studies (Cote d'Ivoire, Nigeria, Botswana and Tanzania). Other studies deal with institutional problems of resource-rich countries after conflict (Sudan) and with the institutions to enhance environmental protection parallel to economic growth and poverty reduction (Niger). Further studies deal with institutions to bridge the gap between formal and informal entrepreneurial sectors in Kenya and Tanzania. Local issues and perspectives for designing new growth and poverty alleviation strategies are considered in case studies on rural-urban development gaps in Tanzania and on microfinance as an instrument for new growth and poverty alleviation strategies (Tanzania and Eritrea). A study on small farmers in Ghana provides information on the role they can play in value chains. Two studies on Nigeria highlight the local and the sub-regional health and poverty alleviation programmes and the relation to growth. Book reviews and book notes on the theme are part of the volume. This volume builds the foundation for a comprehensive strategy of policy reforms in Africa so as to integrate new growth and poverty alleviation strategies. Complementary to Volume XIV is Volume XIII on “New Growth and Poverty Alleviation Strategies for Africa - Interational and Regional Perspectives“. Both volumes are of importance for all those who work in African countries as officials, executives, managers, researchers, and policy-makers, but also for all those who actively support Africa's development concerns at the international, regional, country, local, and project levels. They will experience this Volume XIV and also the complementary Volume XIII as indispensable sources of insight, reference, and inspiration.
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Finanzielle Instabilität und Krise in den Post-Transformations-Ländern
Hubert Gabrisch
Wirtschaftspolitische Blätter,
No. 3,
2009
Abstract
Contagion was only the trigger of the unexpectedly severe crisis in European post-transition countries. Rather, increasing financial fragility of the countries since 2001, after their banking and financial sector was overtaken by international financial institutions, was the origin. Euphoric expectations induced an asset price inflation followed by an increasing debt burden of the private sector, which was fueled by net capital inflows. This study argues that simple concepts of demand reduction do not offer any way out of the crisis. A second transition is necessary, which establishes a new growth model being robust against speculative capital flows and offering high growth rates.
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Growth, Employment, Poverty Alleviation and Institutional Development – Lessons from Country Cases – An Introduction
Tobias Knedlik, Karl Wohlmuth
African Development Perspectives Yearbook, No. 14,
2009
Abstract
Economic growth is a central concept in judging the progress of economic development. Since the early years of economic sciences, economists aim to explain the differences in the production of goods and services among economies. Economic policy focuses on economic growth as the basis for the well-being of nations. The simple idea is that the extension of the productive capacity and finally the increase of consumption possibilities in an economy is the basis of all policies aiming to increase a nation’s welfare. It is therefore not surprising that aims of development policy are often linked to specific economic growth targets. So the United Nation’s Millennium Development Goals are assumed only to be achieved if a certain level of economic growth can be reached.
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Book Review on Michael Grimm, Stephan Klasen, Andrew McKay (eds.) (2007): Determinants of Pro-poor Growth - Analytical Issues and Findings from Country Cases
Tobias Knedlik
African Development Perspectives Yearbook, No. 14,
2009
Abstract
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Book Review on Lukas Menkhoff (ed.) (2006): Pro-poor Growth: Policy and Evidence
Tobias Knedlik
African Development Perspectives Yearbook, No. 14,
2009
Abstract
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Openness and Growth: The Long Shadow of the Berlin Wall
Claudia M. Buch, Farid Toubal
Journal of Macroeconomics,
No. 3,
2009
Abstract
The question whether international openness causes higher domestic growth has been subject to intense discussions in the empirical growth literature. This paper addresses the issue in the context of the fall of the Berlin Wall in 1989. We analyze whether the slow convergence in per capita incomes between East and West Germany and the lower international openness of East Germany are linked. We address the endogeneity of openness by adapting the methodology proposed by Frankel and Romer (1999) to a panel framework. We instrument openness with time-invariant exogenous geographic variables and time-varying exogenous policy variables. We also distinguish the impact of different channels of integration. Our paper has three main findings. First, geographic variables have a significant impact on regional openness. Second, controlling for geography, East German states are less integrated into international markets along all dimensions of integration considered. Third, the degree of openness for trade has a positive impact on regional income per capita.
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Industrielle Cluster als Ursache regionaler Prosperität? Zur Konvergenz deutscher Arbeitsmarktregionen 1996-2005
Alexander Kubis, Matthias Brachert, Mirko Titze
Raumforschung und Raumordnung,
/6
2009
Abstract
This paper explores the impact of industrial clusters on regional growth at level of Germany’s functionally defined labour market regions (AMR) within a regional convergence model. It focuses especially on the role of the co-location of vertically connected industrial sectors. Based on works of Schnabl (2000) it is possible to identify three different effects of industrial clusters on regional economic performance. Beside the effect of regionally concentrated economic sectors (horizontal clusters) and value adding chains (vertical clusters) on the region itself, we are able to control for regional spillover effects of industrial clusters. Further the study allows the isolated examination of the impact of industrial cluster while taking regional convergence into consideration. It is possible to demonstrate positive growth effects of industrial clusters along with an overall process of convergence as same as with a specific eastern one. Therefore industrial cluster present an opportunity to explain deficits within the process of East-West-Convergence. Their relative absence of industrial clusters in Eastern Germany influences the growth potential in a negative way.
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Die Identifikation horizontaler und vertikaler industrieller Clusterstrukturen in Deutschland – Ein neues Verfahren und erste empirische Ergebnisse
Mirko Titze, Matthias Brachert, Alexander Kubis
Raumforschung und Raumordnung,
/6
2009
Abstract
. If regional development agencies assume the cluster concept to be an adequate framework to promote regional growth and competitiveness, it is necessary to identify industrial clusters in a comprehensive manner. Previous studies used a diversity of methods starting with specific regional case studies, input-output methods and different concentration measures. This article presents a new instrument in empirical cluster research – the Qualitative Input-Output Analysis –, which offers the possibility to identify industrial cluster in conjunction with concentration measures. Especially, this method allows the combination of an identified critical mass of regional firms with the necessity of interaction of these firms within an input-output framework. Applying this method to Germany’s “Arbeitsmarktregionen” we find that 103 “Arbeitsmarkregionen“ show first signs of horizontal industrial clusters, while only 28 regions are able to attract vertical industrial clusters. 139 “Arbeitsmarktregionen” did not show signs of industrial clusters according to the research design.
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