Cyclical adjustment, capital-labor substitution and total factor productivity convergence - East Germany after unification

Konferenzbeitrag

Despite rapid economic integration and massive help from the Federal Government East German productivity catching up faded out in the nineties. This paper presents panel-data estimates of the productivity adjustment based on a production function framework and a stylized adjustment model of the economy. The central empirical result is a decomposition of the sources of productivity growth. The estimates reveal that a large part of productivity growth in the early nineties is related to factors that were specific for those period. The fading out since the mid-nineties is attributed to the development of total factor productivity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Convergence and Structural Change ; No. D5-V4

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Socialist Systems and Transitional Economies: General
• Subject: Economics of transition ; productivity convergence

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Smolny, Werner
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37169
• Last update: 10.03.2025, 11:44 AM CET