Article
German Unification and the ‘Market Adoption’ Hypothesis
Cambridge Journal of Economics
(1995)
Abstract
‘Market adoption’ is often blamed for inducing precipitous decline in East Germany's comparatively inefficient economy. Government transfers and private sector investments contributed toward income and investment equalisation between the east and west of Germany. But the price East Germany paid for unification was the transfer out of vast portions of the regional stock of wealth: as productive assets, forests, farms, and property; by the outmigration of the technical work force, and by the liquidation of the regional scientific potential, features which may well limit eastern Germany's recovering historical losses relative to western Germany.
Disciplines
Publication Date
August, 1995
DOI
10.1093/oxfordjournals.cje.a035327
Publisher Statement
© 1995 Academic Press Limited
Citation Information
Hall, J., & Ludwig, U. (1995). German unification and the ‘market adoption’hypothesis. Cambridge Journal of Economics, 19(4), 491-507.