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A distribution dynamics approach to regional GDP convergence in reunified Germany

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  • Juessen Falko

    (University of Dortmund, Department of Economics)

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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File URL: http://128.118.178.162/eps/urb/papers/0506/0506008.pdf
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Bibliographic Info

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
Date of revision:
Handle: RePEc:wpa:wuwpur:0506008

Note: Type of Document - pdf; pages: 30. The paper includes a referee appendix.
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Web page: http://128.118.178.162

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Keywords: regional convergence; distribution dynamics; nonparametric econometrics; stochastic kernel; regional policy;

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Cited by:
  1. Beate Schirwitz & Christian Seiler & Klaus Wohlrabe, 2009. "Regionale Konjunkturzyklen in Deutschland – Teil III: Konvergenz," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 62(15), pages 23-32, 08.
  2. Benjamin Wirth, 2013. "Ranking German regions using interregional migration - What does internal migration tells us about regional well-being?," ERSA conference papers ersa13p1254, European Regional Science Association.
  3. Per Botolf Maurseth, 2013. "Regional Convergence and Divergence in Europe. Patterns and regularities," ERSA conference papers ersa13p412, European Regional Science Association.
  4. Matthias Firgo & Peter Huber, 2013. "Unconditional Convergence in Currency Unions: An analysis of European regions from 1991 to 2009," WWWforEurope Policy Paper series 4, WWWforEurope.
  5. Matthias Firgo & Peter Huber, 2014. "Convergence as a heterogeneous process: what can be learnt about convergence in EMU from regional experiences?," Empirica, Springer, vol. 41(2), pages 129-151, May.
  6. Werner Smolny, 2012. "Cyclical Adjustment, Capital-labor Substitution and Total Factor Productivity Convergence – East Germany After Unification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(4), pages 445-459, July.

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