This paper examines (the absence of effective) pro-productivity policies in Germany. Peculiarities such as the German reunification, the strong export orientation, the still sizeable manufacturing sector as well as the large share of medium-sized companies may require different pro-productivity policies compared to those in other countries. The paper begins with a comprehensive review of productivity trends and sources in Germany, followed by an overview of the most significant (pro)-productivity policies implemented after the German reunification in 1990. The role of these key (pro)- productivity policies is discussed within the broader context of the ongoing productivity slowdown. Persistently weak productivity growth suggests that either these reforms were not sufficiently far-reaching, or other factors continue to hinder productivity growth. Overall, it can be concluded that Germany frequently adopts proven policy approaches from other countries, albeit often with a certain time lag, while also relying on tailored national strategies. This pattern reflects a “same tools, different paths” model.
Author Thomas Niebel