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A distribution dynamics approach to regional GDP convergence in reunified Germany

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Author Info
Juessen Falko (University of Dortmund, Department of Economics)

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Abstract

This paper presents an empirical study of GDP per worker (and per capita) convergence across German labour market regions during 1992 to 2002 using nonparametric techniques. There is evidence for a tendency towards convergence during the observed period, i.e. regions that were less productive in 1992 (East-German regions) established a higher relative GDP in 2002. It is an advantage of our approach that it allows to make predictions about the long run distribution of regional production. We predict a persistent inequality among German regions. This result implies that the substantial regional policy expenditures made by the German government and the EU will not achieve their aim of equalisation, and need therefore to be critically reviewed.

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Paper provided by EconWPA in its series Urban/Regional with number 0506008.

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Length: 30 pages
Date of creation: 06 Jun 2005
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Handle: RePEc:wpa:wuwpur:0506008

Note: Type of Document - pdf; pages: 30. The paper includes a referee appendix.
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Related research
Keywords: regional convergence; distribution dynamics; nonparametric econometrics; stochastic kernel; regional policy;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hans-Friedrich Eckey & Thomas Döring & Matthias Türck, 2006. "Convergence of Regions from 23 EU Member States," Discussion Papers in Economics 86/06, University of Kassel, Institute of Economics. [Downloadable!]
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