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Gunnar Myrdal and the Persistence of Germany's Regional Inequality

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Author Info

  • John Hall
  • Udo Ludwig

Abstract

This paper seeks to establish that contributions to regional theory advanced by Gunnar Myrdal exhibit high levels of explanatory power when clarifying challenges facing Germany's eastern region since the fall of the Berlin Wall. Myrdal's evolutionary institutionalist contribution is contrasted with the "convergence hypothesis" advanced by R. Barro and X. Sala-i-Martin. Challenged is their prediction that Germany's eastern region would experience relatively higher annual rates of per capita output growth, and that levels of per capita output would converge between the eastern and western regions over time. Myrdal's approach is argued superior as it allows for considering backwash and spread effects within a framework of circular and cumulative causation, emerging between Germany's western and eastern regions.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.

Volume (Year): 43 (2009)
Issue (Month): 2 (June)
Pages: 345-352

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Handle: RePEc:mes:jeciss:v:43:y:2009:i:2:p:345-352

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Web page: http://www.mesharpe.com/mall/results1.asp?acr=jei

Related research

Keywords: backwash effects; circular and cumulative causation; convergence hypothesis; Germany; Gunnar Myrdal;

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Cited by:
  1. Ulrich Blum, 2011. "An Economic Life in Vain − Path Dependence and East Germany’s Pre- and Post-Unification Economic Stagnation," IWH Discussion Papers 10, Halle Institute for Economic Research.

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