The Structure of International Competitiveness in the Federal Republic of Germany: An Appraisal
- ISBN-10
- 0821302019
- ISBN-13
- 9780821302019
- Category
- Competition, International.
- Pages
- 64
- Language
- English
- Published
- 1983
- Author
- Frank Dietmar Weiss
Description
In the Federal Republic of Germany, the 1980s are likely to see a continuation of the track competition from developing countries and resultant pressures for adjustment. This paper looks at the determinants of West Germany's comparative advantage, using that information in combination with evidence about the evolution of factor endowments and economic policies to assess the likely direction of West Germany's future specialization, particularly with respect to developing countries. Finally, the role of policy in influencing West Germany's specialization and structural adjustment is discussed. This study tested the neo-factor proportions theory and the neo-technology theory, which have been used to explain Germany's comparative advantage, in light of more current data. The conclusions were that craftspeople carried the burden of explanation and that innovativeness and scale economies performed less well. The results also indicated that the developing countries are competitive with West Germany in a far wider range of products than was previously thought.
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