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Economic capability of East German regions: Results of a cluster analysis

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  • Franz Kronthaler
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    Abstract

    Kronthaler F. (2005) Economic capability of East German regions: results of a cluster analysis, Regional Studies 39 , 739-750. This paper analyses the economic capability of East German regions compared with West German regions. Based on new growth theory and new economic geography, and using relevant empirical literature, regions are clustered according to a set of growth factors. The clustering results find little evidence that the economic capability of East German regions is already comparable with West German regions. Economic disadvantages are particularly rooted in lower technical progress, a lack of entrepreneurship, lower business and industrial concentration, and a loss of human capital. However, there are a few East German regions with a high economic capability, but even those suffer from economic disadvantages such as lower technical progress, lower industrial activity and a poorer regional accessibility.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 39 (2005)
    Issue (Month): 6 ()
    Pages: 739-750

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    Handle: RePEc:taf:regstd:v:39:y:2005:i:6:p:739-750

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    Related research

    Keywords: Regional disparities; Economic capability; Cluster analysis; East Germany; Ecarts regionaux; Capacite economique; Analyse par la theorie des grappes; Est de l'Allemagne; Ungleichartigkeiten; wirtschaftliche Leistungsfahigkeit; Clusteranalyse; Ostdeutschland; Disparidades regionales; Capacidad economica; Analisis de clusters; Alemania del Este; JEL classifications: R12; O18;

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    1. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March.
    3. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
    4. Hans-Werner Sinn & Frank Westermann, 2000. "Two Mezzogiornos," CESifo Working Paper Series 378, CESifo Group Munich.
    5. Ottaviano, Gianmarco Ireo Paolo & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
    6. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
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