REASONS OF SLOWER ECONOMIC GROWTH OF EASTERN FEDERAL STATES OF THE FRG IN THE ASSESSMENT OF SCIENTIFIC LITERATURE (Przyczyny slabszego wzrostu gospodarczego wschodnich krajów RFN w ocenie literatury naukowej)

The article dwells upon the concept of 'growth diagnostics' introduced by D. Rodrik. It sees this descriptive model as a background for analysing insufficient economic growth in East Germany since Reunification. Having outlined the main premises of 'growth diagnostics' the paper reviews selected empirical studies devoted to East-West economic problems after unification. Market failures (lack of coordination, scale economies, externalities) seem to be the most important reasons for East Germany's lagging behind. Modern, tailored made industrial policy shall address these problems.