The Economics of German Unification

The economic integration of Germany has proven to be a massive undertaking. The economies of East Germany and West Germany had vastly different sectorial structures and were clearly at different levels of development. The process of integration continues to be characterized by tremendous structural change, and has enormous implications for the global economy and the European Community in particular.
"The Economics of German Unification" examines the most crucial issues in this process of transformation. The contributors discuss how the unification treaty was achieved, and its implications for the key sectors such as agriculture and services. They examine issues which are part of the unification process how unification is being financed, and the process of monetary unification. The global dimension is considered both in monetary terms and in regard to international trade flows. One chapter is devoted to the relationship between wages, productivity and employment, a crucial question as enterprises in the East struggle to compete with the most efficient manufacturing sector in Europe.

German unification is proving much more difficult than was originally envisaged. The integration of two national economies with different economic orders, different sectoral structures and divergent levels of development seems set to take a long time. This timely examination of the major issues involved emphasises the impact of unification on different sectors of the economy and their likely consequences.

Preface 1. Negotiating the Unification of Germany: International Dimension, Manfred Knapp 2. The Transformation of Economic Systems - The German Example, Egon Tuchfeldt 3. German-German Monetary Union: Main Options, Costs and Repurcussions, Rolf H. Hasse 4. Wages, Productivity and Employment in East-Germany, Klaus-Dieter Schmidt and Birgit Sander 5. Taxes and Transfers - Financing German Unification, Michael Huther and Hans-Georg Peterson 6. The Social Aspects of German Reunification, Detlef Landua 7. German Unification and the European Community: Trade Aspects, A. Ghanie Ghaussey 8. German Unification and the External Value of the Deutsche Mark, Wolf Schafer 9. Energy Policy in Eastern Germany, Helmut Groner 10. Transport Policy in Eastern Germay, Herbert Baum 11. The Services Sector in Eastern Germany - An Engine for Growth and Employment?, Otto G. Mayer and Michael Krakowski 12. Agricultural Sector in Eastern Germany, Gunther Schmitt 13. Ecological Transformation in East Germany, Klaus Zimmermann 14. Security after German Unification: Theoretical Analysis and Economic Consequences, Dieter Fritz-Abmus