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De-industrialization in West Germany

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  • Klodt, Henning

Abstract

This paper provides a theoretical framework and some empirical information on the shift from industrialization to de-industrialization which typically occurs in the course of economic growth. It is suggested that such a non-monotonic structural change is caused by a diminishing productivity bias and a constant demand bias between the industrial sector and other sectors of the economy. This pattern could be covered by short-term reversals of relative price trends resulting from external shocks. Hence, the recent gains of the industrial sector in West Germany are interpreted as a temporary deviation from the long-term trend of de-industrialization.

Suggested Citation

  • Klodt, Henning, 1988. "De-industrialization in West Germany," Open Access Publications from Kiel Institute for the World Economy 1364, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:1364
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    File URL: https://www.econstor.eu/bitstream/10419/1364/1/730251942.pdf
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    References listed on IDEAS

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    6. Donges, Juergen Bernhard, 1986. "The West German economy towards the year 2000: an analysis of structural change," Kiel Working Papers 268, Kiel Institute for the World Economy (IfW Kiel).
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    8. Dornbusch, Rudiger, 1973. "Devaluation, Money, and Nontraded Goods," American Economic Review, American Economic Association, vol. 63(5), pages 871-880, December.
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    Cited by:

    1. Klodt, Henning, 1994. "Deindustrialisierung als Wachstumsbremse?," Open Access Publications from Kiel Institute for the World Economy 2049, Kiel Institute for the World Economy (IfW Kiel).
    2. Schmidt, Klaus-Dieter, 1997. "Deutschmark appreciation and structural change: An overview of economic structural reports," Kiel Working Papers 789, Kiel Institute for the World Economy (IfW Kiel).

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