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The East German economy is too fragmented

DIW Weekly Report 82 (2015), 35, pp. 764-772

Almost 25 years after reunification, the East German economy has not yet caught up with the West German economy. Compared to West Germany, the per capita economic output of the East German Länder reached only slightly more than 70 per cent in 2013. Even in the short or medium term, the new federal states will not catch up with the west German level because their growth dynamics are too low.

How reliable are the profitability analyses for the fixed link across the Fehmarnbelt?

Financing model and cost-benefit analysis put to the test

Scandlines ApS commissioned DIW Econ to prepare an analysis of the fixed link across the Fehmarnbelt.

Current studies on the fixed link across the Fehmarnbelt paint an optimistic picture when they conclude that the tunnel is worthwhile both from an economic and a macroeconomic perspective. The available analyses cannot confirm these assessments. On the contrary, they show that the economic viability of the fixed link is at risk.

The fragmented nature of the East German economy

The lack of larger business units is often cited as one of the reasons for lower growth dynamics in eastern Germany. For example, large companies are often more productive than average, important for a region’s innovation performance, pay above-average wages and are significantly better able than small companies to tap into international markets. They are also important anchor points for the development of clusters and regional value chains.

Concept of a low carbon development strategy for Ukraine

Agenda for investment and economic modernisation

On behalf of  UNDP Ukraine and supported by the Federal Ministry of the Environment, Nature Conservation and Nuclear Sefety (BMUB) based on a decision of the Parliament of the Federal Republic of Germany.