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Infrastructure needs in east Germany

Karin Behring
ifo Institut für Wirtschaftsforschung, München, 2001

in: ifo Schnelldienst, 2001, 54, Nr. 09, 21-28

Commissioned by the governments of the east German Länder, the Ifo Institute, using a "physical approach", calculated the infrastructure needs that will remain in east Germany, to achieve parity with west Germany, after the Solidarity Pact I expires in 2005. The calculation was limited to the two areas of transportation and supply and waste disposal. First of all, the current infrastructure needs were calculated by comparing conditions in east and west Germany. Then, a projection was made of how close the Länder in east Germany will come in closing the gap by 2005. The study concluded that even in 2005, east Germany will still be feeling the effects of German division in its infrastructure.

JEL Classification: L160,O100,O400

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ifo Institut für Wirtschaftsforschung, München, 2001