n?u=RePEc:ais:wpaper:1603&r=his

More documents

Recommendations

Info

Copyright © The author(s), 2016. ISSN 2421-7131 a/ working paper [online] The Italian Association for the Study of Economic Asymmetries (a/simmetrie) was established in 2013 as an independent, nonprofit think-tank based in Rome (Italy). a/simmetrie undertakes applied research and policy analysis on economic asymmetries, both in their economic nature, and in their political and juridical implications; provides a forum for the advocacy of policies leading to a more equitable and sustainable growth; and promotes the public debate in the field of economic policy-making, by involving researchers, politicians, and other relevant stakeholders. The a/simmetrie working paper series publishes outputs from a/simmetrie research in progress, as well as papers presented at a/simmetrie conferences and seminars, and contributions from visiting fellows. Comments are welcome. Unless otherwise indicated, the views expressed in this publication are those of the author(s). Publication does not imply endorsement by a/simmetrie. Italian Association for the Study of Economic Asymmetries via Filippo Marchetti 19, I-00199 Roma, Italy www.asimmetrie.org info@asimmetrie.org
WHY EAST GERMANY DID NOT BECOME A NEW MEZZOGIORNO Andrea BOLTHO, Magdalen College, University of Oxford Wendy CARLIN, University College London and CEPR Pasquale SCARAMOZZINO, SOAS, University of London and Università degli Studi di Roma Tor Vergata Abstract – In an earlier paper (Journal of Comparative Economics, 1997) the authors argued, against the conventional wisdom of the time, that East Germany was unlikely to follow a development path similar to that of the Italian Mezzogiorno. This paper revisits the issue some 25 years after German reunification. Statistical tests show that the absence of income per capita convergence between South and North that has characterized Italy since the war, continued over the last two or more decades. Germany, on the other hand, has, over the same period, seen significant income convergence between East and West. The main explanations that are provided for such contrasting outcomes stress differences between the two countries (and within the two countries) in investment performance, in labour market flexibility, and, in particular, in developments in the tradable sector whose performance in East Germany has been much superior to that of the Mezzogiorno. These differences, in turn, are linked to very different standards of institutional quality and governance which are almost certainly rooted in the two “poor” regions’ longer-run history. JEL Classification: N10, O11, O57, P52, R11. Keywords: East Germany, Mezzogiorno, Investment performance, Labour market flexibility, Social capital, Competitiveness, Economic complexity.
Page 4 and 5: Introduction Following German reuni
Page 6 and 7: same region, of a large and competi
Page 8 and 9: structural breaks could be observed
Page 10 and 11: esults shown in the Table (which re
Page 12 and 13: suggestions that the forty years of
Page 14 and 15: growth [Knack and Keefer, 1997; Hor
Page 16 and 17: Footnotes 1. At the time a parallel
Page 18 and 19: Tables Table 1 - Regressions for pe
Page 20 and 21: Table 3 - Export Complexity Indices
Page 22 and 23: Table 5 - Regressions for trade and
Page 24 and 25: Figures Figure 1. Germany and Italy
Page 26 and 27: Figure 5A. Germany and Italy: Forei
Page 28 and 29: controlling for the population and
Page 30 and 31: Table A2 - The Relation between Act
Page 32 and 33: References Annoni, P. and K.Kozovsk
Page 34 and 35: Economics, Vol.41, No.3, August, 78

n?u=RePEc:ais:wpaper:1603&r=his

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?