What Can Ukraine Learn from <i>Aufbau Ost</i> ?
Journal: Intereconomics
Year: 2023

Abstract This article uses Aufbau Ost (or reconstruction of the East) of the new German states as a structural model to estimate the possible costs of an Aufbau Ost 2.0 of Ukraine while taking institutional differences into account. Based on three approaches, the model is validated for the new German states – namely capital coefficients, actual investment flows and actual public transfers – and applied to Ukraine. Key indicators for Germany from 2021 are used as a basis. The economic goal for Uk