TITLE

Industrial Development: France and Germany Drifting Apart

AUTHOR(S)
Brenke, Karl
PUB. DATE
February 2013
SOURCE
DIW Economic Bulletin;Feb2013, Vol. 3 Issue 2, p3
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The significance of the manufacturing sector for the economies of both the European Union and the euro area has declined dramatically over the past ten years. However, development varied between the individual member states, which is particularly evident in a comparison between France and Germany. The manufacturing industry in Germany was able to maintain its position within the national economy, halting the structural change towards the service sector. Conversely, there has been rapid deindustrialization in France: here, value added from the manufacturing sector as a percentage of the overall economy is now even lower than in eastern Germany. Within the German industrial sector, the manufacture of technically complex goods has continued to gain ground. In France, on the other hand, the production of such goods has always been relatively insignificant and, over the last decade, has become even less important. The gap between these two countries is also widening with regard to wage development as well as price competitiveness: in Germany, wage growth has lagged behind increases in production, whereas in France salaries have increased at a much faster pace than production. German manufacturing was, therefore, able to expand substantially into foreign markets, while the French industrial sector is the poorest performing in the EU. If national currencies had been retained, the ramifications of such diverging developments would have been mitigated through exchange rate adjustments. Meanwhile, a currency union requires responsible policies-this also applies to wage development.
ACCESSION #
88011033

 

Related Articles

  • SPECIALIZATION AND COMPETITIVENESS OF THE MANUFACTURING INDUSTRY IN THE CEE COUNTRIES. Micic, Vladimir; Veselinovic, Petar; Miletic, Dalibor // Actual Problems of Economics / Aktual'ni Problemi Ekonomìki;2014, Vol. 151 Issue 1, p120 

    The manufacturing industry is the most important part of the economy of the CEE. The paper provides a research on the influence of the specialization and comparative advantages of manufacturing sectors of the selected CEE countries over 2000-2010. These countries have been recording an...

  • Abstracts.  // Atlantic Economic Journal;Mar1992, Vol. 20 Issue 1, p77 

    Presents an abstract of a commentary made by Spelman College researcher Romie Tribble Jr. regarding the paper `Exchange Rate and Profit Margin for U.S. Manufacturing: Evidence from Aggregate Data,' which was presented by Medgar Evers College researcher Ki-Ho Kim at the 32nd International...

  • DOLLAR RUNS RIOT. Sibillin, Anthony // BRW;5/5/2011, Vol. 33 Issue 17, p29 

    The article looks at the impact of high Australian dollar exchange rate on the manufacturing industry in Australia in 2011. Former federal treasury official Leigh Harkness argues that the low number of manufacturing jobs is a consequence of floating the dollar. He adds that the banking sector...

  • Salarios relativos y dinámica manufacturera en México. Sauceda Parra, Algélica Lidia; Varela Llamas, Rogelio // Análisis Económico;2013, Vol. 28 Issue 69, p129 

    No abstract available.

  • Dancing with the bear: Global competition. Clifton, David S.; Combes, Richard S. // Economic Development Review;Spring91, Vol. 9 Issue 2, p61 

    Presents information on economics in the United States. Details from David Osborne's `Laboratories of Democracy'; Key to nation's success; Debated points from prediction that U.S. manufacturing is at a disadvantage; Importance of understanding competition; Elements for change from viewpoint of...

  • Manufactures' shipments, inventories, and orders.  // Economic Indicators;Mar1996, p21 

    Presents statistics for manufactures' shipments, inventories and orders for the period of 1986 to February 1996, in the United States. Manufacturers' shipments; Manufacturers inventories; Manufacturers' new orders; Manufacturers' unfilled orders; Manufacturers' inventory shipments ratio.

  • The shifting composition of U.S. manufactured goods trade. Hickok, Susan // Quarterly Review (01476580);Spring91, Vol. 16 Issue 1, p27 

    Examines a number of factors that might explain the trends in U.S. trade composition. Detail of the trends in U.S. import and export composition during the 1980s; Impact of shifts in trade composition on the U.S. trade outlook; Conclusion.

  • Industry drifts from peak.  // Crain's Cleveland Business;5/12/97, Vol. 18 Issue 19, p24 

    Presents a survey conducted by the Purchasing Management Association of Cleveland's Business Survey Report for April 1997, which showed a dropped in the manufacturing economy. Reason for the decline; Comments from W. Fredrick Bartz, chairman of the group's Business Survey Committee; Findings of...

  • Your town's favorite groceries. Klein, Matthew // American Demographics;Jul97, Vol. 19 Issue 7, p34 

    Discusses how a town's product reflects the demographics of people and climate in that area. Places where health and beauty items sell best; Merchandise sold in Boston; How local culture affects merchandise sale.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics