In his book Die Basar-Ökonomie (2005) Hans-Werner Sinn developed the theory of the “pathological export boom”, according to which Germany has become overspecialised, concentrating too much value added on exports at the expense of the domestic sectors, i.e. value added in exports is increasing faster than value added for the economy as a whole. This hypothesis together with the “bazaar economics” hypothesis implies that value added in exports is growing too fast and that in addition export amounts are increasing too fast in relation to this value added. In particular in the discussion regarding the title of export world champion, often attached to German merchandise trade, this theory has attracted a good deal of public interest.
Hans-Werner Sinn: Die Basar-Ökonomie. Deutschland: Exportweltmeister oder Schlusslicht? Econ Verlag: Berlin 2005 More Information
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