IDEAS home Printed from
   My bibliography  Save this article

Economic convergence across German regions in light of empirical findings


  • John B. Hall
  • Udo Ludwig


This paper challenges the convergence hypothesis advanced by R. Barro and X. Sala-i-Martin as it is applied to explain the forces behind, patterns exhibited by and time line for German regional convergence. Exposed in some detail are the spurious neoclassical and marginalist assumptions, purporting that 'automatic' forces would indeed bring about a convergence in per capita incomes between two German regions. A trend exhibiting slow growth in per capita income in Germany's eastern region renders a Beta coefficient so low as to rule out convergence altogether. In addition, capital fails to move between German regions in the pattern assumed by the convergence hypothesis. Copyright 2006, Oxford University Press.

Suggested Citation

  • John B. Hall & Udo Ludwig, 2006. "Economic convergence across German regions in light of empirical findings," Cambridge Journal of Economics, Oxford University Press, vol. 30(6), pages 941-953, November.
  • Handle: RePEc:oup:cambje:v:30:y:2006:i:6:p:941-953

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Donald MacKenzie, 2006. "An Engine, Not a Camera: How Financial Models Shape Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134608, January.
    2. David Colander, 2009. "The Making of a European Economist," Books, Edward Elgar Publishing, number 13617.
    3. Barber,William J., 1989. "From New Era to New Deal," Cambridge Books, Cambridge University Press, number 9780521367370, March.
    4. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 51(2), pages 209-223.
    5. Jan Kregel, 2009. "Why don't the bailouts work? Design of a new financial system versus a return to normalcy," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 653-663, July.
    6. Krueger, Anne O, et al, 1991. "Report of the Commission on Graduate Education in Economics," Journal of Economic Literature, American Economic Association, vol. 29(3), pages 1035-1053, September.
    7. Hodgson, Geoffrey M & Rothman, Harry, 1999. "The Editors and Authors of Economics Journals: A Case of Institutional Oligopoly?," Economic Journal, Royal Economic Society, vol. 109(453), pages 165-186, February.
    8. Mark Blaug, 1991. "The Historiography of Economics," Books, Edward Elgar Publishing, number 632.
    9. Stigler, George J & Stigler, Stephen M & Friedland, Claire, 1995. "The Journals of Economics," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 331-359, April.
    10. Samuelson, Paul A. & Patinkin, Don & Blaug, Mark, 1991. "On the Historiography of Economics: A Correspondence," Journal of the History of Economic Thought, Cambridge University Press, vol. 13(02), pages 144-158, September.
    11. Bruno S. Frey & Reiner Eichenberger, 1993. "American and European Economics and Economists," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 185-193, Fall.
    12. Ingham, Geoffrey, 2004. "The nature of money," economic sociology_the european electronic newsletter, Max Planck Institute for the Study of Societies, vol. 5(2), pages 18-28.
    13. Geoffrey Hodgson, 2005. "Knowledge at work: Some neoliberal anachronisms," Review of Social Economy, Taylor & Francis Journals, vol. 63(4), pages 547-565.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Klaus Abberger & Biswa Nath Bhattacharyay & Chang Woon Nam & Gernot Nerb & Siegfried Schönherr, 2014. "How Can the Crisis Vulnerability of Emerging Economies Be Reduced?," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 65, October.
    2. Yvonne Schindele, 2010. "How Long Does it Take to Become an Entrepreneurial Society - The Case of German Convergence in Self-Employment," Jena Economic Research Papers 2010-015, Friedrich-Schiller-University Jena.
    3. Bernd Aumann & Rolf Scheufele, 2010. "Is East Germany catching up? A time series perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 177-192.
    4. Juan Carlos Martinez Oliva, 2009. "Riunificazione intertedesca e politiche per la convergenza," Mo.Fi.R. Working Papers 14, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    5. van Hoorn, André & Maseland, Robbert, 2010. "Cultural differences between East and West Germany after 1991: Communist values versus economic performance?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 791-804, December.
    6. André Van Hoorn & Robbert Maseland, 2010. "Cultural Differences Between East and West Germany After 1991: Communist Values vs. Economic Performance?," Post-Print hal-00911822, HAL.
    7. Götz Marta, 2010. "Poland in the Period of Economic Transition and Germany After Reunification an Attempt at Assessing Σ-Convergence," European Spatial Research and Policy, De Gruyter Open, vol. 17(2), pages 71-94, October.
    8. Gyawali, Buddhi Raj & Banerjee, Swagata (Ban) & Hill, Anquinette & Bukenya, James O., 2012. "Exploring Variations in Income Growth in Southeastern United States," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 120933, Southern Agricultural Economics Association.
    9. Mohammad Ashraf & Khan A. Mohabbat, 2010. "Output Convergence and the Role of Research and Development," Annals of Economics and Finance, Society for AEF, vol. 11(1), pages 35-71, May.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cambje:v:30:y:2006:i:6:p:941-953. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.