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Regional convergence and economic performance : a case study of the West German Laender

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Author Info
Buscher, Herbert S.
Felder, Johannes
Steiner, Viktor
Abstract

In the paper we analyze the convergence process of the West German Laender from 1970 to 1995 using descriptive tools as well as panel estimation methods. Although there have been some winners in this process, the main finding is that convergence was insufficient in the sense that no gains have been achieved with respect to a stronger harmonization of the economic performances in the Laender. Some of them proofed to be unable to respond adequately to structural changes, whereas others successfully overcame those challenges. Panel estimates of production functions of the Laender reveal no significant differences in the production technology across Laender. -- Die Arbeit untersucht, ob im Zeitraum von 1970 bis 1996 eine Konvergenz im wirtschaftlichen Wachstum der westlichen Bundesländer stattgefunden hat. Die Ergebnisse zeigen, daß insbesondere die südlichen Bundesländer ihre relative Position verbessern konnten. Jene Bundesländer, die schon 1970 als ?strukturschwach? galten, schafften es nicht, den Abstand zu verringern. Der Strukturwandel wurde von den einzelnen Bundesländern mit unterschiedlichem Erfolg bewältigt. Eine Länder vermochten daraus Vorteile für ihre Entwicklung zu ziehen, während andere nur unzureichend auf diese Herausforderung reagierten. Insgesamt kann im Untersuchungszeitraum weder von einer Konvergenz noch von einer Divergenz der wirtschaftlichen Entwicklung in den Ländern gesprochen werden. Dem widerspricht nicht, daß einige Ländern (Hessen und Bayern) insgesamt erfolgreicher in ihrer Entwicklung waren als die übrigen Bundesländer.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 99-10.

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Date of creation: 1999
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Handle: RePEc:zbw:zewdip:5227

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

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  1. Loewy, Michael B. & Papell, David H., 1996. "Are U.S. regional incomes converging? Some further evidence," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 587-598, December. [Downloadable!] (restricted)
  2. Pack, Howard, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter. [Downloadable!] (restricted)
  3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Daniel, Betty C., 1997. "International interdependence of national growth rates: A structural trends anakysis," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 73-96, September. [Downloadable!] (restricted)
  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  6. Flaig, Gebhard & Steiner, Viktor, 1993. "Searching for the "Productivity Slowdown": Some Surprising Findings from West German Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 57-65, February. [Downloadable!] (restricted)
  7. Heckman, James J, 1991. "Identifying the Hand of the Past: Distinguishing State Dependence from Heterogeneity," American Economic Review, American Economic Association, vol. 81(2), pages 75-79, May. [Downloadable!] (restricted)
  8. Romer, Paul M, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter. [Downloadable!] (restricted)
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