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Understanding West German economic growth in the 1950s

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  • Eichengreen, Barry
  • Ritschl, Albrecht

Abstract

We evaluate explanations for why Germany grew so quickly in the 1950s. The recent literature has emphasized convergence, structural change and institutional shake-up while minimizing the importance of the post-war shock. We show that this shock and its consequences were more important than neoclassical convergence and structural change in explaining the rapid growth of the West German economy in the 1950s. We find little support for the hypothesis of institutional shakeup. This suggests a different interpretation of post-World War II German economic growth than features in much of the literature.

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  • Eichengreen, Barry & Ritschl, Albrecht, 2008. "Understanding West German economic growth in the 1950s," Economic History Working Papers 22304, London School of Economics and Political Science, Department of Economic History.
    • Handle: RePEc:ehl:wpaper:22304
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    2. Kilian Huber, 2021. "Are Bigger Banks Better? Firm-Level Evidence from Germany," Journal of Political Economy, University of Chicago Press, vol. 129(7), pages 2023-2066.
    3. Bartels, Charlotte & Jäger, Simon & Obergruber, Natalie, 2020. "Long-Term Effects of Equal Sharing: Evidence from Inheritance Rules for Land," IZA Discussion Papers 13665, Institute of Labor Economics (IZA).
    4. Gregori Galofré-Vilà & Christopher M Meissner & Martin McKee & David Stuckler, 2019. "The economic consequences of the 1953 London Debt Agreement," European Review of Economic History, European Historical Economics Society, vol. 23(1), pages 1-29.
    5. Madsen, Jakob B., 2010. "Growth and capital deepening since 1870: Is it all technological progress?," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 641-656, June.
    6. Feld, Lars P. & Köhler, Ekkehard A. & Nientiedt, Daniel, 2021. "The German Anti-Keynes? On Walter Eucken’S Macroeconomics," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(4), pages 548-563, December.
    7. Braun, Sebastian & Kvasnicka, Michael, 2014. "Immigration and structural change: Evidence from post-war Germany," Journal of International Economics, Elsevier, vol. 93(2), pages 253-269.
    8. Braun, Sebastian Till & Weber, Henning, 2021. "How do regional labor markets adjust to immigration? A dynamic analysis for post-war Germany," Journal of International Economics, Elsevier, vol. 129(C).
    9. Eric Bengtsson & Engelbert Stockhammer, 2018. "Wages, income distribution and economic growth in Scandinavia," Working Papers PKWP1811, Post Keynesian Economics Society (PKES).
    10. Huber, Kilian Maria, 2020. "Are bigger banks better? Firm-level evidence from Germany," LSE Research Online Documents on Economics 121861, London School of Economics and Political Science, LSE Library.
    11. Feld, Lars P. & Nientiedt, Daniel, 2023. "Examining the ordoliberal tradition in classical liberal thought," Freiburg Discussion Papers on Constitutional Economics 23/5, Walter Eucken Institut e.V..
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    13. Sebastian Braun & Michael Kvasnicka, 2012. "Immigration and Structural Change – Evidence from Post-war Germany," Ruhr Economic Papers 0345, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. Alexiou, Constantinos, 2022. "Evaluating the falling rate of profit in the context of the UK economy," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 84-94.
    15. Focacci, Chiara Natalie & Perez, Carlota, 2022. "The importance of education and training policies in supporting technological revolutions: A comparative and historical analysis of UK, US, Germany, and Sweden (1830–1970)," Technology in Society, Elsevier, vol. 70(C).
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    18. Boldyrev, Roman (Болдырев, Роман) & Nevskiy, Sergei (Невский, Сергей), 2014. "Monetary reforms in post-war Germany (1948): preparation, conduct, outcome (conclusion) [Денежные Реформы В Послевоенной Германии (1948): Подготовка, Проведение, Итоги]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 25-53, December.
    19. Boldyrev, Roman (Болдырев, Роман) & Nevskij, Sergei (Невский, Сергей), 2014. "Monetary reforms in post-war Germany (1948): preparation, holding, results [Денежные Реформы В Послевоенной Германии (1948): Подготовка, Проведение, Итоги]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 38-65, October.

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    JEL classification:

    • N0 - Economic History - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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