Economic Aspects of German Unification

1. Front Matter

   Pages I-XV

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2. Introduction: Economic Aspects of German Unification

   1. Introduction: Economic Aspects of German Unification

      • Paul J. J. Welfens

      Pages 1-6

3. Structural and Macroeconomic Changes

   1. Front Matter

      Pages 7-7

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   2. The Structural Renewal of Eastern Germany: Some Initial Observations

      • Ullrich Heilemann, Klaus Löbbe

      Pages 9-38

   3. Integrating the East German States into the German Economy: Opportunities, Burdens and Options

      • Lutz Hoffmann

      Pages 39-75

   4. Sectoral Shocks and Structural Adjustment in the East German Transformation Process

      • Manfred Wegner

      Pages 77-98

   5. Intergovernmental Fiscal Relations After German Unification: Problems and Solutions

      • Klaus-Dirk Henke, Peter Lutz, Claudia Ade

      Pages 99-133

   6. Macroeconomic Aspects of German Unification

      • Hans-Werner Sinn

      Pages 135-189

   7. Comments On: Macroeconomic Aspects of German Unification

      • Rudiger Dornbusch

      Pages 190-198

   8. Transforming a Socialist Economy: Currency Unification, Banking Reform and Capital Markets

      • Karl-Hans Hartwig

      Pages 199-210

   9. Comments on: Transforming a Socialist Economy: Currency Unification, Banking Reform and Capital Markets

      • Juergen Klose

      Pages 211-216

4. National Challenges

   1. Front Matter

      Pages 217-217

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   2. Labor Markets and Social Security Systems Facing Unification: Systemic Challenges in Germany

      • Doris Cornelsen

      Pages 219-232

   3. Comments: The New Germany — A Divided Society

      • Gerhard Bäcker

      Pages 233-238

   4. Environmental Protection: Problems and Prospects in East and West Germany

      • Günter Streibel

      Pages 239-263

   5. Comments on: Environmental Protection: Problems and Prospects in East and West Germany

      • Peter Palinkas

      Pages 264-285

   6. Structural Adjustment and Privatization of the East German Economy

      • Claus Schnabel

      Pages 287-315

   7. Comments on: Structural Adjustment and Privatization of the East German Economy — Guidelines for a Privatization Strategy

      • Garry J. Schinasi

      Pages 316-320

   8. Government Support for Restructuring the East German Economy

      • Henning Klodt

      Pages 321-345

   9. Comment on: Government Support For Restructuring the East German Economy: Capital or Labor Subsidies

      • George M. von Furstenberg

      Pages 346-356

Paul 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.

• Deutschland
• European Integration
• European Union (EU)
• Germany
• Polis
• Systemtransformation
• Wiedervereinigung
• german reunification
• organizational change
• reform
• social security
• systemic transformation
• transformation

• Wirtschafts- und Sozialwissenschaftliche Fakultät Lehrstuhl Wirtschaftspolitik/Internationale Wirtschaftsbeziehungen, University of Potsdam, Potsdam, Germany

  Paul J. J. Welfens

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