Input Output Structural Decomposition Analysis of German Economy during Euro Era: A Critical Appraisal

Abstract

Germany has one of the strongest economies in the world, recording impressive performance in international trade, especially in industrial goods. The growth of the German economy in general and persistent German trade surpluses in particular have been the subject of extensive research. In the present paper, in our turn, we will try to decipher the key factors of German success story, in order to give a holistic and in-depth interpretation. To achieve the above goal, in the empirical part of our research we use the German input-output tables and apply the structural decomposition analysis. The period to be considered empirically extends from 2000 to 2014.