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Economic convergence across German regions in light of empirical findings

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  • John B. Hall
  • Udo Ludwig

Abstract

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, Cambridge Political Economy Society, vol. 30(6), pages 941-953, November.
    • Handle: RePEc:oup:cambje:v:30:y:2006:i:6:p:941-953
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    File URL: http://hdl.handle.net/10.1093/cje/bel001
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    Citations

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    Cited by:

    1. 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.
    2. Erfurth, Philipp Emanuel, 2022. "Is the European Union More Unequal Than the Habsburg Empire? Examining Regional Inequalities in Habsburg Regions From 1870 to 2018," SocArXiv 86p27, Center for Open Science.
    3. 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.
    4. 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.
    5. 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.
    6. Yvonne Schindele, 2010. "How Long Does it Take to Become an Entrepreneurial Society - The Case of German Convergence in Self-Employment," Jena Economics Research Papers 2010-015, Friedrich-Schiller-University Jena.
    7. 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.
    8. 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.
    9. 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, Sciendo, vol. 17(2), pages 71-94, October.
    10. 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.

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