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Weakening investment dynamics in eastern Germany

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  • Erich Langmantel

Abstract

The economic growth in western and eastern Germany has converged since 1997 to a large extent, and the per-capita economic performance in eastern Germany has stood at just 60% of the western German level since the mid-1990s. The catching-up process is clearly on hold: Since 2000 per-capita investment in eastern Germany has not been larger than in western Germany. In 2001 and 2002, spending on new plant and equipment was even reduced by approximately €8 billion in eastern Germany.

Suggested Citation

  • Erich Langmantel, 2003. "Weakening investment dynamics in eastern Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 56(06), pages 37-40, March.
    • Handle: RePEc:ces:ifosdt:v:56:y:2003:i:06:p:37-40
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    References listed on IDEAS

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    1. Hans-Werner Sinn, 2000. "Zehn Jahre deutsche Wiedervereinigung - Ein Kommentar zur Lage der neuen Länder," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(26-27), pages 10-22, November.
    2. Hans-Werner Sinn, 2000. "Ten years of German unification - a commentary on the situation in east Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(26), pages 10-22, November.
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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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