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Entrepreneurship and Post-Socialist Growth

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  • Daniel Berkowitz
  • David DeJong

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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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 406.

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

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Keywords: economic transition; small legal enterprises;

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  1. 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.
  2. 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.
  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.
  4. Simon Johnson & John McMillan & Christopher Woodruff, 1999. "Property Rights, Finance, and Entrepreneurship," CESifo Working Paper Series 212, CESifo Group Munich.
  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.
  6. 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.
  7. Harry Broadman, 2000. "Reducing Structural Dominance and Entry Barriers in Russian Industry," Review of Industrial Organization, Springer, vol. 17(2), pages 155-175, September.
  8. Yingyi Qian & Cheng-Gang Xu, 1993. "Why China's economic reforms differ: the m-form hierarchy and entry/expansion of the non-state sector," LSE Research Online Documents on Economics 3755, London School of Economics and Political Science, LSE Library.
  9. J√°nos Kornai, 2001. "Ten years after the road to a free economy: the author's self-evaluation," Politick√° ekonomie, University of Economics, Prague, vol. 2001(5).
  10. Berkowitz, Daniel & Holland, Jonathan, 2001. "Does privatization enhance or deter small enterprise formation?," Economics Letters, Elsevier, vol. 74(1), pages 53-60, December.
  11. Earle, John S. & Sakova, Zuzana, 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).
  12. Webster, L.M., 1993. "The Emergence of Private Sector Manufacturing in Hungary, A Survey of Firms," Papers 229, World Bank - Technical Papers.
  13. Broadman, Harry G., 2000. "Reducing structural dominance and entry barriers in Russian industry," Policy Research Working Paper Series 2330, The World Bank.
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