Download or read book Subsidization and Structural Change in Eastern Germany written by Katja Gerling and published by Springer Science & Business Media. This book was released on 2002-06-20 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic policy interventions of a scale as effected in Eastern Germany can be expected to have a significant impact on the economy. The question whether investment subsidization as a core policy instrument is a suitable measure to initiate a self-sustaining upswing in the Eastern German economy and an improvement of living standards has been reason for dispute since the beginning of transition. Using econometric techniques, the study analyzes the effects of investment subsidies on economic structure, employment and productivity in the Eastern German industry. The study suggests that there is a need for redesigning subsidization and changing infrastructure and labor market policies.