Economic Growth and Change
Show Less

Economic Growth and Change

National and Regional Patterns of Convergence and Divergence

Edited by John Adams and Francesco Pigliaru

The pursuit of economic growth is at the top of every nation’s policy agenda at the end of the 20th century. This authoritative and comprehensive book goes beyond the narrowly-based convergence model of economic growth by considering global, national and regional patterns of growth from a comparative perspective.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 13: Will East Germany become a new Mezzogiorno?

Andrea Boltho, Wendy Carlin and Pasquale Scaramozzino


Page 323  13. Will East Germany become a new Mezzogiorno?*  Andrea Boltho, Wendy Carlin and Pasquale Scaramozzino1  INTRODUCTION  In both popular and academic discussion, the regional economic problems that Germany has encountered since monetary unification in 1990 have often been compared  to the North–South problem which Italy has been facing since the monetary unification of 1862. In particular, a number of writers have argued that the process of  income convergence between East and West Germany could last an inordinately long time and be very costly, thus resembling the very slow, or possibly absent,  convergence between Southern and Northern Italy over the last 130 years (Barro and Sala­i­Martin, 1991; Siebert, 1991; Hughes Hallett and Ma, 1993; Blien,  1994).  That a comparison between the two countries’ regional experiences may be warranted is suggested by Table 13.1 which presents early 1990s information on selected  economic indicators for the two areas. Both Eastern Germany and Southern Italy show significant gaps vis­à­vis the rest of the country in GDP per capita and  unemployment levels, though less so in wage levels. Both areas, if in different proportions, also rely very heavily on a net transfer of resources from the central  government. Such transfers ensure that consumption standards are relatively uniform across space, but, by the same token, they contribute to, and may even  perpetuate, a model of regional dependence. Traditionally, this has been seen as one in which the weak region runs a persistent trade deficit with the rest of the country...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.