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