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Entrepreneurship and Post-Socialist Growth

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Author Info
Daniel Berkowitz
David DeJong

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Abstract

A growing body of national-level survey evidence indicates that small-scale entrepreneurial activity has been an important engine of growth in post-socialist economies. Here we use a rich regional data set to obtain a statistical characterization of the relationship between entrepreneurial activity and economic growth within post-Soviet Russia. Russia is a useful laboratory for evaluating links between entrepreneurial activity and growth because of the striking variation in initial conditions, the adoption of policy reforms, and entrepreneurial activity observed across its large number of regions in the early stages of transition. Russia has also experienced striking regional variation in subsequent growth. Conditional on variations in initial conditions and policy reform measures, we find that regional entrepreneurial activity exhibits a strong and enduring relationship with subsequent growth.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 406.

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Date of creation: 01 Oct 2001
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Handle: RePEc:wdi:papers:2001-406

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Related research
Keywords: economic transition small legal enterprises

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Find related papers by JEL classification:
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
P3 - Economic Systems - - Socialist Institutions and Their Transitions
R1 - Urban, Rural, and Regional Economics - - General Regional Economics

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Broadman, Harry G., 2000. "Reducing structural dominance and entry barriers in Russian industry," Policy Research Working Paper Series 2330, The World Bank. [Downloadable!]
  2. J. Kornai, . "Ten Years After "The Road to a Free Economy": The Author's Self-evaluation," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki".
  3. John McMillan & Christopher Woodruff, 1998. "Interfirm Relationships and Informal Credit in Vietnam," William Davidson Institute Working Papers Series 132, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  4. Harry Broadman, 2000. "Reducing Structural Dominance and Entry Barriers in Russian Industry," Review of Industrial Organization, Springer, vol. 17(2), pages 155-175, September. [Downloadable!] (restricted)
  5. Frye, Timothy & Shleifer, Andrei, 1997. "The Invisible Hand and the Grabbing Hand," American Economic Review, American Economic Association, vol. 87(2), pages 354-58, May. [Downloadable!] (restricted)
    Other versions:
  6. John S. Earle & Zuzana Sakova, 1999. "Entrepreneurship from Scratch: Lessons on the Entry Decision into Self-Employment from Transition Economies," IZA Discussion Papers 79, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Johnson, Simon & McMillan, John & Woodruff, Christopher, 1999. "Property Rights, Finance, and Entrepreneurship," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  8. Webster, L.M., 1993. "The Emergence of Private Sector Manufacturing in Hungary, A Survey of Firms," Papers 229, World Bank - Technical Papers.
  9. Jiahua Che & Yingyi Qian, . "Institutional Environment, Community Government, and Corporate Governance: Understanding China's Township-Village Enterprises," Working Papers 97043, Stanford University, Department of Economics. [Downloadable!]
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  10. Berkowitz, Daniel & Holland, Jonathan, 2001. "Does privatization enhance or deter small enterprise formation?," Economics Letters, Elsevier, vol. 74(1), pages 53-60, December. [Downloadable!] (restricted)
  11. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  12. A. Richter & M.E. Schaffer, 1996. "The Performance of De Novo Private Firms in Russian Manufacturing," CERT Discussion Papers 9610, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bhaumik, Sumon & Estrin, Saul, 2005. "How Transition Paths Differ: Enterprise Performance in Russia and China," IZA Discussion Papers 1484, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Stepan Jurajda & Katherine Terrell, 2001. "What Drives the Speed of Job Reallocation during Episodes of Massive Adjustment?," CERGE-EI Working Papers wp170, The Center for Economic Research and Graduate Education - Economic Institute, Prague. [Downloadable!]
    Other versions:
  3. Tomi Ovaska & Russell S. Sobel, 2004. "Entrepreneurship in Post-Socialist Economies," Working Papers 04-06, Department of Economics, West Virginia University. [Downloadable!]
  4. Sumon Bhaumik & Saul Estrin, 2003. "Why Transition Paths Differ: Russian and Chinese Enterprise Performance Compared," William Davidson Institute Working Papers Series 525, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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