Following German reunification in 1990, East Germany's centrally
planned economy was abolished and replaced by West Germany's social
market economy. Western Germany has since provided vast financial
support to aid the transformation, and enable eastern Germany to
catch-up with western Germany's productivity and living standards.
This book evaluates the main events and their outcomes since
mid-1990 and the associated policy issues. The authors assess the
medium to long term growth prospects of eastern Germany and the
wider implications for western Germany and Europe.The Economics of
German Unification analyses the economic process of assimilating
eastern Germany into the institutions and performance levels of
western Germany. It includes original research as well as providing
an overview of existing literature. Among the topics discussed are:
the relative backwardness of East Germany's economy the impact of
monetary and economic integration restructuring and privatization
<>li>labour market and industrial policy, including an
analysis of wage restraint and cost reduction the prospects for
eastern Germany catching-up economically with western Germany the
repercussions for German competitiveness nationally and within the
wider European context This book will be welcomed by academics,
researchers and undergraduates interested in the economics of
transition, comparative economic systems, political economy and the
European business environment.
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