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Economic capability of East German regions: Results of a cluster analysis

Franz Kronthaler

Regional Studies, 2005, vol. 39, issue 6, 739-750

Abstract: Kronthaler F. (2005) Economic capability of East German regions: results of a cluster analysis, Regional Studies 39 , 739-750. This paper analyses the economic capability of East German regions compared with West German regions. Based on new growth theory and new economic geography, and using relevant empirical literature, regions are clustered according to a set of growth factors. The clustering results find little evidence that the economic capability of East German regions is already comparable with West German regions. Economic disadvantages are particularly rooted in lower technical progress, a lack of entrepreneurship, lower business and industrial concentration, and a loss of human capital. However, there are a few East German regions with a high economic capability, but even those suffer from economic disadvantages such as lower technical progress, lower industrial activity and a poorer regional accessibility.

Keywords: Regional disparities; Economic capability; Cluster analysis; East Germany; Ecarts regionaux; Capacite economique; Analyse par la theorie des grappes; Est de l'Allemagne; Ungleichartigkeiten; wirtschaftliche Leistungsfahigkeit; Clusteranalyse; Ostdeutschland; Disparidades regionales; Capacidad economica; Analisis de clusters; Alemania del Este; JEL classifications: R12; O18 (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1080/00343400500213630

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Handle: RePEc:taf:regstd:v:39:y:2005:i:6:p:739-750