Economic Development in Saxony-Anhalt: empirical results and policy recommendations
Franz Barjak, Peter Franz, Gerhard Heimpold, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 3,
2001
Abstract
Though the basic economic problems are still of the same kind all over East Germany, partially considerable regional differences exist in respect to the conditions for further economic development. Therefore, detailed empirical analyses for the individual Länder and their sub-regions are necessary making economic policy recommendations. The following contribution deals with this task taking Saxony-Anhalt as an example.
A multitude of indicators is used to bring out the specific strengths and weaknesses of the economy of this state (Land) and its sub-regions. The outstanding strength of Saxony-Anhalt are the high private investment outlays which served to build a modern capital stock during the past ten years. Another fundamental strength of the Land are the universities and public research institutions. Besides these unambiguous strengths some ‘ambivalent’ growth factors exist which are characterized by strengths as well as by weaknesses. Such ‘ambivalent’ growth factors are the infrastructure and the situation of important sectors and branches of economic activity. The weaknesses of Saxony-Anhalt’s economic structure find expression especially in its low supply with human capital and entrepreneurial initiative as well as in the few research and development efforts of its firms.
The aforementioned strengths of the Land are reflected insufficiently in its economic output. Consequently some economic policy measures are proposed to bring about an improvement: Amongst other things Saxony-Anhalt should develop a clear idea of its economic development (Leitbild). Such a Leitbild could be related to the Land’s strengths or to the elimination of its major weaknesses. This also would facilitate a concentrated use of the different economic policy instruments. The latter shouldn’t only be concentrated on singular economic growth factors but also spatially, on the economically stronger sub-regions, as this can lead to larger growth effects for the entire Land. The good provision with public research institutions in Saxony-Anhalt should be used to bring about an improvement of the economic structure to a larger extent than until now. This could be done for example by means of a further strengthening of applied research vs. basic research, possibly via orienting the public research more towards the existing branches of economic activity. Finally, the Land should intensify its efforts to increase the entrepreneurial initiative in Saxony-Anhalt, e. g. by means of introducing courses in economics in its schools.
Read article
Effects of the new vote weighting system at EU Council of Ministers on structural fond resources for new members
Martina Kämpfe, Johannes Stephan
Wirtschaft im Wandel,
No. 2,
2001
Abstract
At the recent Nice summit, the EU council of ministers decided on institutional adjustments for the European Union. Such reforms are of particular importance for an enlarged European Union in which up to 27 new members could participate. Amongst the reforms, two decisive changes concern the distribution of votes in an enlarged council and additional conditions which will be attached to majority decisions.
This redistribution of power within the council will effect in particular economic issues, as e.g. the size and distribution of structural funds budgets to be expected upon admittance as EU-member states. Such effects can be estimated by use of models of probability of coalition-building. The model used here predicts that the budget for structural funds for the ten accession countries will be lower than would have been under the old voting power regime. This highlights that the accession group in Central East Europe lost relative voting power via coalitions in comparison to the voting regime prior to Nice. Solely Poland enjoyed an increase in voting power which also suggests an increase in budgets Poland can now expect to receive in the framework of EU structural funds policy.
Read article
Incentive effects of unemployment benefits on job searches
Hilmar Schneider, Olaf Fuchs
Wirtschaft im Wandel,
No. 11,
2000
Abstract
Economic theory predicts that an anticipated cut of the replacement ratio in the future affects the search intensity at all dates previous to the cut. This effect is illustrated by simulating the dynamics of the reservation wage for different time profiles of the replacement ratio with a simple calibrated search model.
Read article
The economic dimension of sustainability and entropy economy in the energy sector
Martin Weisheimer
IWH Discussion Papers,
No. 120,
2000
Abstract
Read article
Border regions in the European integration process – Results of an IWH conference -
Franz Barjak, Gerhard Heimpold
Wirtschaft im Wandel,
No. 5,
2000
Abstract
Den Folgen der Integration für die wirtschaftliche Entwicklung in Grenzregionen widmete sich eine Tagung des IWH am Beispiel der deutsch-polnischen Grenzregion, in der sich derzeit die Wirkungen der schrittweisen Grenzöffnung mit strukturellen Anpassungsproblemen im Zuge der Transformation überlagern. In der Regionalpolitik erweisen sich vor allem Maßnahmen als integrationsfördernd, die die Barrierewirkungen der Grenzlage beseitigen. Politikmaßnahmen, die dagegen auf Faktorpreisunterschieden und eingeschränkter Faktormobilität aufbauen, z.B. grenznahe oder grenzüberschreitende Gewerbeparks oder Sonderwirtschaftszonen, stehen eigentlich längerfristig dem Integrationsgedanken entgegen.
Read article
Regional analysis of East Germany: A comparison of the economic situation of states, districts, and municipalities
Franz Barjak, Peter Franz, Gerhard Heimpold, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 2,
2000
Abstract
A decade after the German unification we look at the extent of economic differentiation within East Germany. This is achieved by help of a set of selected statistical indicators for the years 1991 to 1998. Comparisons are drawn a) between the East German jurisdictions and b) between West and East German jurisdictions. On the federal state (Laender) level it can be shown that each state has developped its own specific economic profile. Brandenburg is characterized by a positive net migration (suburban function for Berlin), relatively low unemployment and high GDP values, but relatively low entrepreneurial activities. Saxony has achieved the lowest unemployment, a good endowment with human capital, modern industrial technology, infrastructure, and entrepreneurial activities. Special features of Thuringia consist of a relatively large number of patent applications and a stable industrial base. The economic state of Mecklenburg-Vorpommern is characterized by low industrial investment, negative net migration, and high unemployment. A special feature of this federal state is the intense investmenr in tourist services. Saxony-Anhalt registers the highest decrease in the numbers of industrial workers between 1991 and 1998 and the highest unemployment. On the other side it shows the highest amount of investment, especially in chemical industry and in mineral oil processing.
On the county level four clusters can be identified by means of a cluster analysis: A “cluster of counties with severe economic weaknesses” with a bias in the regions indutrialized in an early stage, a “cluster with a high human capital potential and suburbanization loss” consisting of 21 cities, a “cluster of counties with good economic results” predominantly surrounding the larger cities, and a “cluster of counties with SME growth potential” concentrating in Thuringia and Saxony.
The results at the city level show that the larger cities above 100.000 inhabitants, especially Dresden and Leipzig, do better than the smaller cities. Jena in Thuringia has specialized as a location for R&D, Zwickau in Saxony as a location for the automobile industry. Altogether the economic differences between the East German federal states, counties, and cities still are less pronounced than the degree of differentiation of their West German counterparts.
Read article
Foreign banks in economic development: Experiences from the regulated financial system of South Korea
Ralf Müller
IWH Discussion Papers,
No. 110,
2000
Abstract
Read article
Business cycle prospects 1999: Germany's economic upswing takes a dip. Growth in East Germany stronger again
Brigitte Loose, Hans-Ulrich Brautzsch, Udo Ludwig, Ingrid Haschke, Ruth Grunert, Kristina vanDeuverden, Michael Seifert, Silke Tober, Christian Schumacher
Wirtschaft im Wandel,
No. 1,
1999
Abstract
Mit dem Jahresausblick für 1999 wird die ausführliche Konjunkturprognose von Mitte 1998 für das Jahr 1999 aktualisiert. Zu Beginn der dritten Phase der Europäischen Währungsunion sind die konjunkturellen Rahmenbedingungen überwiegend positiv. Das niedrige Zinsniveau wirkt anregend, die zu erwartenden, im Rahmen des Verteilungsspielraums bleibenden Lohnabschlüsse tragen zum ruhigen Preisklima bei, die Finanzpolitik wirkt nicht mehr restriktiv. Bei zunehmenden binnenwirtschaftlichen Impulsen verstärkt sich die Führungsrolle der Inlandsnachfrage unter den Auftriebskräften 1999. Bei fortgesetztem Produktionsanstieg verbessert sich die Lage am Arbeitsmarkt 1999 weiter, am ersten Arbeitsmarkt allerdings nur in Westdeutschland.
Read article
The economic situation in Russia – Crisis reveals economic policy mistakes (Thirteenth report by DIW Berlin, IfW Kiel and IWH Halle)
Forschungsreihe,
No. 10,
1998
Abstract
Read article
Germany 1998/99 – Domestic demand strengthens economic expansion
Brigitte Loose, Hans-Ulrich Brautzsch, Udo Ludwig, Ingrid Haschke, Ruth Grunert, Michael Seifert, Silke Tober, Christian Schumacher
Wirtschaft im Wandel,
No. 9,
1998
Abstract
Der Aufsatz analysiert und prognostiziert die konjunkturelle Entwicklung in Deutschland und im Euroraum in ausführlicher Form für das laufende Jahr 1998 und das Folgejahr 1999. Die Impulse aus dem Ausland bleiben im Prognosezeitraum kräftig, auch wenn sie infolge der negativen Auswirkungen, die direkt und indirekt auf den deutschen Export von der Ausbreitung des Krisenherdes in Asien ausgehen, an Stärke verlieren. Die Binnenkonjunktur wird 1998 als Antriebskraft der gesamtwirtschaftlichen Produktion gegenüber der Auslandsnachfrage an Bedeutung gewinnen und im Jahr 1999 in etwa mit ihr gleichziehen. In Ostdeutschland wird dabei die Schwächephase langsam überwunden, so dass im Jahr 1999 hinsichtlich der Wachstumsdynamik fast wieder zu Westdeutschland aufgeschlossen werden kann. Die Kräftigung des konjunkturellen Aufschwungs zeigt auch erste Spuren am Arbeitsmarkt, vor allem in Westdeutschland.
Read article