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How Long Does it Take to Become an Entrepreneurial Society - The Case of German Convergence in Self-Employment

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  • Yvonne Schindele

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

Since the beginning of the transformation of East Germany from a socialist planned economy to a market economy, there has been an ambitious political goal of fostering entrepreneurial activity in that part of the country. One of the most-hoped for results of this undertaking is the anticipated contribution of small and new firms to solving the economic, social, and political problems of East Germany, thereby narrowing the gap between East and West Germany. This paper uses panel data from 1992 to 2005 on 97 German regions to analyze recent convergence in self-employment rates. An astonishing catching-up process is observed for East German regions during the period under study. However, the general convergence between East and West Germany observed during the first years after reunification has not been maintained. In short, some East German regions have achieved convergence with West German self-employment rates and some have not.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-015.

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Date of creation: 17 Mar 2010
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Handle: RePEc:jrp:jrpwrp:2010-015

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Keywords: Entrepreneurship; regional convergence; self-employment; regional devel- opment; transition; Germany;

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References

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Citations

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Cited by:
  1. Michael Wyrwich, 2013. "Ready, set, go! Why are some regions entrepreneurial jump-starters?," Jena Economic Research Papers 2013-037, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Yvonne Schindele & Michael Fritsch & Florian Noseleit, 2011. "Micro-level Evidence on the Survival of German Manufacturing Industries - A Multidimensional Analysis (refereed paper)," ERSA conference papers ersa10p549, European Regional Science Association.
  3. Michael Wyrwich, 2011. "New business formation and regional growth across regions with distinct initial industry structures," ERSA conference papers ersa10p656, European Regional Science Association.

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