Artikel
Productivity: Urban-rural differences affect productivity more than east-west differences
Following reunification, productivity in eastern Germany grew rapidly. A strong industrial sector is key to a thriving German economy. However, the narrowing of the industrial productivity gap between eastern and western Germany has come to a standstill since the financial and economic crisis and the gap remains considerable today. Nevertheless, when comparing similar regions in eastern and western Germany, the productivity gap shrinks. In both eastern German cities as well as rural areas, industrial companies are using labor and capital almost as efficiently as their competitors in comparable regions in the west. However, the productivity level in urbanized areas in eastern Germany is significantly lower than in urbanized regions in western Germany. For this reason, these regions in the east should be strengthened by expanding research and infrastructure and by encouraging the creation and growth of clusters. Progress in closing the productivity gap between eastern and western Germany can also be made by implementing a sustainable, countrywide infrastructure offensive to increase the attractiveness and growth opportunities of rural areas. As the east is very rural in structure, it would profit from this in particular.
- Language
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Englisch
- Bibliographic citation
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Journal: DIW Weekly Report ; ISSN: 2568-7697 ; Volume: 9 ; Year: 2019 ; Issue: 43 ; Pages: 387-393 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
- Classification
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Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Industry Studies: Manufacturing: General
Size and Spatial Distributions of Regional Economic Activity
- Subject
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productivity
manufacturing
spatial analysis
- Event
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Geistige Schöpfung
- (who)
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Belitz, Heike
Gornig, Martin
Schiersch, Alexander
- Event
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Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
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Berlin
- (when)
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2019
- DOI
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doi:10.18723/diw_dwr:2019-43-1
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Belitz, Heike
- Gornig, Martin
- Schiersch, Alexander
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2019