The winner takes it all? Multidimensional assessment of economic growth factors in Bundesländer

Marta Götz

doi:10.2478/v10103-009-0042-3

Authors

Marta Götz Institute for Western Affairs in Poznań

DOI:

https://doi.org/10.2478/v10103-009-0042-3

Abstract

This paper seeks to offer a thorough assessment of current state of the play as well as developments taking place in 1989-2008 with respect to various determinants of economic growth in Germany. The primary aim is to evaluate the growth potential by constructing and consequently calculating the summary index encompassing various dimensions of economy. In order to take a holistic and comprehensive view on economic growth factors, conceptual framework of five modules encapsulating numerous factors and thus incorporating various growth aspects has been put forward. Competitiveness (production function), Sectors (output approach), Business cycle (expenditure approach), General economic condition (main macroindices) and Catalysts (residual - all other factors) are taken into account. Preliminary results confirm to some extent earlier studies pointing to existing West-East Germany's discrepancies. It seems particularly visible when taking into account elements of the first module and - key for long term growth - factors of the fifth unit.

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