Lack of Convergence across Former West German States
نویسنده
چکیده
Adopting a time series convergence definition and panel unit root testing procedures, we fail to reject the null hypothesis of no convergence in GDP per capita across former West German states. This result stands in contrast to the findings of previous studies for West German regions using cross-section regression techniques and is contrary to the time series findings for the United States. From the policy perspective, our study strongly suggests that some kind of regional economic development policy is necessary in order to reduce productivity and income disparities between East and West German states. JEL Classification: C23, O18, O47, O52, R11
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