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A Distribution Dynamics Approach to Regional GDP Convergence in Unified Germany

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  • Juessen, Falko

    (University of Wuppertal)

Abstract

This paper uses nonparametric techniques to study GDP convergence across German labor market regions and counties during the period 1992-2004. The main result is that regional convergence in unified Germany has been substantial. In the first years after German unification the distribution of GDP has been characterized by a pronounced bimodality. The dispersion of the GDP distribution has become substantially smaller over time. Although some bimodality remains in most recent years, this bimodality is weak in comparison to previous years. Nevertheless, disparities among regions located in the Eastern and Western part of the country are still apparent.

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  • Juessen, Falko, 2009. "A Distribution Dynamics Approach to Regional GDP Convergence in Unified Germany," IZA Discussion Papers 4177, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4177
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    Keywords

    nonparametric econometrics; distribution dynamics; regional convergence; stochastic kernel;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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