Economic aspects of German unification : expectations, transition dynamics and international perspectives ; with 110 tables

Paul J. J. Welfens The editor is pleased to present a second edition of Economic Aspects of German Unification which includes new chapters and several postscripts. Almost five years after unification output in the ex-GDR is back to its 1989 level. Due to a massive intra-German resource transfer consumption per capita in eastern Germany has not fallen as much as output and employment which reduced by one-fifth within three years. Given high West German transfers which represented about 5% of West German GDP and more than 50% of East German GDP the fall of industrial output could have been much stronger than had politically been feasible. Hence structural change necessary for productivity growth was dramatic in the ex-GDR where the goods producing sector (manufacturing, mining, energy and construction) strongly changed its proportions; within four years construction almost doubled, and the share of investment goods production reduced by 10 percentage points between 1990 and 1994 and is· now down to 21. 1 %. Mining lost two-thirds of its share in the producing sector which itself was reduced relative to GDP. The share of the services industry increased by 5 percentage points between 1991 and 1994, but with a share of 27. 7% in East Germany's GDP it was still about 9 percentage points lower than in western Germany. By contrast, government accounted for 20. 9% of GDP in eastern Germany, but for only 13. 2% in western Germany. Front Matter....Pages I-XV Introduction: Economic Aspects of German Unification....Pages 1-6 Front Matter....Pages 7-7 The Structural Renewal of Eastern Germany: Some Initial Observations....Pages 9-38 Integrating the East German States into the German Economy: Opportunities, Burdens and Options....Pages 39-75 Sectoral Shocks and Structural Adjustment in the East German Transformation Process....Pages 77-98 Intergovernmental Fiscal Relations After German Unification: Problems and Solutions....Pages 99-133 Macroeconomic Aspects of German Unification....Pages 135-189 Comments On: Macroeconomic Aspects of German Unification....Pages 190-198 Transforming a Socialist Economy: Currency Unification, Banking Reform and Capital Markets....Pages 199-210 Comments on: Transforming a Socialist Economy: Currency Unification, Banking Reform and Capital Markets....Pages 211-216 Front Matter....Pages 217-217 Labor Markets and Social Security Systems Facing Unification: Systemic Challenges in Germany....Pages 219-232 Comments: The New Germany — A Divided Society....Pages 233-238 Environmental Protection: Problems and Prospects in East and West Germany....Pages 239-263 Comments on: Environmental Protection: Problems and Prospects in East and West Germany....Pages 264-285 Structural Adjustment and Privatization of the East German Economy....Pages 287-315 Comments on: Structural Adjustment and Privatization of the East German Economy — Guidelines for a Privatization Strategy....Pages 316-320 Government Support for Restructuring the East German Economy....Pages 321-345 Comment on: Government Support For Restructuring the East German Economy: Capital or Labor Subsidies....Pages 346-356 Front Matter....Pages 357-357 German Economic Unification and European Integration: Prosperity without Stability?....Pages 359-390 External Aspects of German Unification: The Polish View....Pages 391-401 Comments on: External Aspects of German Unification: The Polish View....Pages 402-408 Front Matter....Pages 357-357 Economic Reform in the USSR and Prospects for Trade and Economic Relations with Unified Germany....Pages 409-421 Comments On: Economic Reforms in the USSR and Prospects for Trade and Economic Relations with Unified Germany....Pages 422-424 German Unification as an Incentive for Institutional and Organizational Changes within The EC: A French View....Pages 425-441 Global Economic Rivalry: New Perspectives on Germany (The EC) Japan and the United States....Pages 443-469 Comments On: Global Economic Rivalry: New Perspectives on Germany (The EC), Japan, and the United States....Pages 470-472 EC Integration and Economic Reforms in CMEA Countries: A United Germany as a Bridge between East and West?....Pages 473-507 Comment On: EC Integration and Economic Reforms in CMEA Countries: A United Germany as a Bridge between East and West?....Pages 508-512 Back Matter....Pages 514-527 This book analyzes the German unification after five years with respect to expectations, international impact and internal adjustments - including dramatic structural shifts. German unification is changing central Europe, the EU and international economic and political relations generally, and raises many new questions for Germany itself, Europe, and the whole international community. Will the enlarged Germany become a new economic giant in Europe and can it maintain stability and prosperity? What are the views of Poland and the ex-USSR, and what implications arise for Western Europe and the United States? Finally, how is the triangular relationship between the USA, the EU, and Japan affected, and how does this affect the United States' ability to organize economic cooperation with Japan and Germany.