East Germany’s Economic Development since Unification

JENS BASTIAN Lecturer at the European Institute, Department of Government, London School of Economics and Political Science JAMES COOP Doctoral candidate at Imperial College, University of London MARC HERZOG Lecturer in Business Administration and Marketing, University College, Dublin MICHAEL HAuTHER Secretary General of the German Council of Economic Experts MICHAEL KASER Honorary professor in the Institute for German studies, University of Birmingham THOMAS LANGE Reader in Economics, Robert Gordon University, Aberdeen ERIC OWEN SMITH Senior Lecturer in Economics, Loughborough University KARL-HEINZ PAQUAe Professor for International Economics, University of Magdeburg GEOFF PUGH Principal lecturer in European Economics, Staffordshire University Business School JOHANNES STEPHAN Doctoral candidate, Institute for German Studies, University of Birmingham RUDI VIS Labour MP for Finchley since May 1997. Formerly Lecturer in Economics, University of East London WOLFRAM WALDNER Assistant Lecturer in Law, Erlangen University

The first book in the Studies in Economic Transition series applies the theory of economic development to the economy of East Germany. The unique economic experiment of the unification of the German economies provided an excellent opportunity for different schools of economic theory to be tested and examined.The first book in the Studies in Economic Transition series applies the theory of economic development to the economy of East Germany. Eight years after the unification of Germany, the book provides a comprehensive and much needed assessment of the transition process in the East, its impact on the German economy as a whole and the important broader lessons for European integration and enlargement. The unique economic experiment of the unification of the German economies provided an excellent opportunity for different schools of economic theory to be tested and examined. The contributors to this book take full advantage of this challenge.