The Role of Institutions in Economic Growth: Why West Germany Outpaced East Germany (1945–1990)

Alnazer Ghaith (2025) The Role of Institutions in Economic Growth: Why West Germany Outpaced East Germany (1945–1990). Nemzetközi Gazdálkodás Kar (2025-)-.

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Absztrakt (kivonat)

After the second world war, Germany was divided, East and West. Each side had different economic and political systems: West Germany had the Federal Republic of Germany (FRG), and East Germany had the German Democratic Republic (GDR). During their journey under different ruling party, this separation created two economic systems and rules that gave two different results for each side of Germany between 1945-1990. West Germany was a social market economy, where it combined private property, competition, and social protection. East Germany adopted a centrally planned economy, with a state ownership. Thesis questions: · Why did West Germany Achieve a stronger economic growth than East Germany? · How did different property rights systems influence investment and productivity on both sides? · How did the social market economy in the west compare with central planning in the East in terms of efficiency and innovation? · How did democracy in west Germany affect economic performance compared to East Germany’s one-party political system? · How did East Germany’s trade inside the COMECON affect its economy compared to West Germany’s openness to global trade? · What kind of external aid and support did each side receive? This thesis shows why West Germany achieved better economic growth than East Germany, during this period. The goal was to focus on the institutions on each side, examine them and check how did the institutions on each side with their different rules affect economic growth. In my thesis I focused on the following institutions: Property Rights, Market Structure, trade openness, and political system. I also show what kind of external aid each side receives. Institutions shape economic outcomes by influencing how the people are going to behave, invest, and make decisions. In this thesis you will learn that secure property rights, for example will encourage entrepreneurship, and state ownership leads to centralized planning which leads to lower efficiency

Intézmény

Budapesti Gazdasági Egyetem

Kar

Nemzetközi Gazdálkodás Kar (2025-)-

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi gazdálkodás

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	1945-1990, Economic, Germany, growth, institutions
SWORD Depositor:	User Archive
Felhasználói azonosító szám (ID):	User Archive
Rekord készítés dátuma:	2026. Júl. 09. 11:50
Utolsó módosítás:	2026. Júl. 09. 11:50

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