Search by keyword: privatization
Restructuring of the East German Industry
The article deals with the institutional and real-economic restructuring of industry in the former GDR based on the transformation of society. It shows how the country overcame the difficulties, what were the effects of a transformational crisis and consequences for the property relations. We also discuss the arranged measures aimed at reviving economic growth and the restructuring of industrial production related with the reindustrialization. To analyze the relationship between the institutional restructuring and its impact on the real economy, we use economic statistical methods. The restructuring of institutions has defined the vector of development for the East German industry, which is stipulated by its integration into the all-German economic system but has a very limited potential for growth and catching-up development. The region is currently much less behind West Germany but still not at the same level. The performance of the East German manufacturing industry accounts for about 63% of the West German one, and its increase has slowed down.
Ludwig U. udo.ludwig@iwh-halle
Keywords: East Germany industry transformation privatization institutional change reindustrialisation restructuring middle class
