Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/2305
Authors: 
Klodt, Henning
Year of Publication: 
1999
Series/Report no.: 
Kiel Working Papers 943
Abstract: 
Catching-up of East German productivity to West German levels has completely faded out sinde the mid 1990s. The remaining productivity gap cannot be attributed to an inferior capital endowment. Instead, it appears to be the result of an inappropriate design of industrial policy which fostered the specialization of East German industry on capital intesive smoke-stack industries. These industries are absorbing a large share of factor inputs, whereas their contribution to aggregate output is rather limited. East Germany will have to face, therefore, another wave of painful structural adjustment when public subsidies will further be reduced.
JEL: 
D24
L16
L52
Document Type: 
Working Paper

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