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Why Germany Has Such a Weak Growth Performance


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  • Horst Siebert
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    Germany has had an extremely low growth performance since 1995. The paper looks at the long-run reasons for this loss of economic dynamics besides German unification: These include leaving labor idle, a declining share of investment in GDP, a weaker innovative activity, an ineffective system for human capital formation with the exception of vocational training and an erosion of the export position with a reduced attractiveness for foreign direct investment. The issue is raised whether Germany belongs to a new category of economies, the NDCs, the Newly Declining Countries.

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1182.

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    Length: 47 pages
    Date of creation: Sep 2003
    Date of revision:
    Handle: RePEc:kie:kieliw:1182

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    Related research

    Keywords: Economic growth; labor and human capital; capital accumulation; innovation; export performance; foreign direct investment; enterprise sector; sectorial change.;

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    1. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, Elsevier, vol. 29(9), pages 1111-1133, December.
    2. Boss, Alfred & Rosenschon, Astrid, 2002. "Subventionen in Deutschland: Quantifizierung und finanzpolitische Bewertung," Kiel Discussion Papers, Kiel Institute for the World Economy (IfW) 392/393, Kiel Institute for the World Economy (IfW).
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    Cited by:
    1. Büttner, Thiess & Cleff, Thomas & Egeln, Jürgen & Licht, Georg & Metzger, Georg & Oberesch, Michael & Rammer, Christian & Belitz, Heike & Edler, Dietmar & Engerer, Hella & Geishecker, Ingo & Schroot, 2006. "Innovationsbarrieren und internationale Standortmobilität: Eine Studie im Auftrag der IG BCE, Chemieverbände Rheinland-Pfalz und der BASF Aktiengesellschaft," ZEW Dokumentationen, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 06-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Olivier Blanchard, 2004. "The Economic Future of Europe," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 18(4), pages 3-26, Fall.
    3. Joachim Möller, 2008. "Wage dispersion in Germany and the US: is there compression from below?," International Economics and Economic Policy, Springer, Springer, vol. 5(4), pages 345-361, December.


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