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Industrial adjustment in Western Europe: Retrospect and prospect

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  • Donges, Juergen B.
  • Glismann, Hans H.

Abstract

The purpose of this paper is to discuss major factors behind failures and successes in structural adjustment. The analysis includes the experience of four major European countries: France, Italy, the United Kingdom and West Germany. These countries are known for diverging performances. Germany has the highest real per capita income, the lowest inflation, and the strongest currency, while its unemployment rate, though depressing by her own historical standards (8 per cent in 1986 as compared to 1 per cent on average during the sixties), is distinctly below those of the other three countries. On the other side of the spectrum is Italy, but this nation is in fact composed of three economies - a highly developed and rapidly growing one in the north, a very backward one in the south and a dynamic economia somersa almost everywhere. The United Kingdom has become the only oil-rich country in the sample, but probably the one which has been struggling most with micro-economic inefficiencies and the power of interest groups (labour unions in particular) in the economic-political decision process for decades. France has become an industrial and technological leader in a shorter space of time (starting its economic transformation in the late fifties) than any of the other sample countries, but it also was struck by an unparalleled experimentation with socialism during the early eighties.

Suggested Citation

  • Donges, Juergen B. & Glismann, Hans H., 1987. "Industrial adjustment in Western Europe: Retrospect and prospect," Kiel Working Papers 280, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwkwp:280
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    References listed on IDEAS

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    1. Dicke, Hugo & Trapp, Peter, 1984. "Investment behavior and yields in some West German industries," Kiel Working Papers 205, Kiel Institute for the World Economy (IfW Kiel).
    2. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    3. Juergen B. Donges, 1980. "Industrial Policies in West Germany's Not so Market‐oriented Economy," The World Economy, Wiley Blackwell, vol. 3(2), pages 185-204, September.
    4. Juergen B. Donges, 1985. "Chronic Unemployment in Western Europe Forever?," The World Economy, Wiley Blackwell, vol. 8(4), pages 353-372, December.
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    Cited by:

    1. Bletschacher, Georg & Klodt, Henning, 1992. "Strategische Handels- und Industriepolitik: theoretische Grundlagen, Branchenanalysen und wettbewerbspolitische Implikationen," Open Access Publications from Kiel Institute for the World Economy 456, Kiel Institute for the World Economy (IfW Kiel).
    2. Hiemenz, Ulrich & Langhammer, Rolf J. & Agarwal, Jamuna Prasad & Groß, Martin & von Kirchbach, Friedrich, 1987. "The competitive strength of European, Japanese and US suppliers on ASEAN markets," Open Access Publications from Kiel Institute for the World Economy 1119, Kiel Institute for the World Economy (IfW Kiel).
    3. Juergen B. Donges, 1989. "The 1980s Economic Growth Weakness in Europe: Focusing on the Supply Side," The Economic Record, The Economic Society of Australia, vol. 65(2), pages 165-176, June.

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