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The paper analyzes the role of the 1948 currency and economic reform in West Germany for growth and social cohesion in Germany and Europe. It describes the theoretical foundation by Walter Eucken and the implementation and defense of the new economic order by Ludwig Erhard. The paper stresses the positive impact of the market economy on growth and welfare in Germany and Europe. Then, it is shown that Eucken's constituting principles of the market economy were gradually eroded after euro introduction in course of crises, with the negative repercussions on growth and equality being explained. The policy conclusion is that only the reconstitution of price stability in the euro area can prevent a further decline of welfare in Europe. The 1948 economic reforms provide an important blueprint for the necessary reform process. [ABSTRACT FROM AUTHOR]

The role of institutions in regional industrial dynamics has been a long‐lasting issue in economic geography and regional studies. This paper seeks to examine this issue in the context of transitional economies, where the market economy is embryonic, by using China as an example. Specifically, we examine how regional industrial dynamics have been shaped by China's peculiar institutional context in general and by its new round of economic reform in particular. One key part of the new reform is the establishment of administrative approval centers (AACs) to streamline official procedures that regulate business start‐ups and existing business. Empirical results show that the establishment of AACs has boosted new industry creations. However, in the first 3 years after the establishment of AACs, the effect of AACs on new industry creation is not evident and becomes significant afterwards. Furthermore, the effect varies across regions and industries. It is especially evident in less marketized cities. Labor‐intensive industries benefit more from the establishment of AACs than do capital‐intensive industries. [ABSTRACT FROM AUTHOR]