The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship
We provide empirical evidence that the experience of a socialist regime leads to a lack of self-reliance by comparing East and West Germans conditional on regional differences in current economic development. This meaningful lack of self-reliance persists after the regime's breakdown and hinders the development of an entrepreneurial spirit, which might hamper the transition process. Since East Germany adopted the formal institutions of a market economy quasi overnight when reunifying with West Germany, we avoid simultaneity issues regarding current institutions and preferences. Further tentative evidence suggests that the socialist regime also affected the composition of the East German population by inducing selective migration before the construction of the Berlin Wall in 1961.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, vol. 7(5), pages 575-601, September.
- John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
- Rainer, Helmut & Siedler, Thomas, 2006.
"Does Democracy Foster Trust?,"
IZA Discussion Papers
2154, Institute for the Study of Labor (IZA).
- Helmut Rainer & Thomas Siedler, 2006. "Does Democracy Foster Trust?," Discussion Papers of DIW Berlin 609, DIW Berlin, German Institute for Economic Research.
- Rainer, Helmut & Siedler, Thomas, 2009. "Does democracy foster trust?," Munich Reprints in Economics 19809, University of Munich, Department of Economics.
- Helmut Rainer & Michael Siedler, 2006. "Does democracy foster trust?," Discussion Paper Series, Department of Economics 200602, Department of Economics, University of St. Andrews.
- DiPasquale, Denise & Glaeser, Edward L., 1999.
"Incentives and Social Capital: Are Homeowners Better Citizens?,"
Journal of Urban Economics,
Elsevier, vol. 45(2), pages 354-384, March.
- Denice DiPasquale & Edward L. Glaeser, 1997. "Incentives and Social Capital: Are Homeowners Better Citizens?," Harvard Institute of Economic Research Working Papers 1815, Harvard - Institute of Economic Research.
- Denise DiPasquale & Edward L. Glaeser, 1998. "Incentives and Social Capital: Are Homeowners Better Citizens?," NBER Working Papers 6363, National Bureau of Economic Research, Inc.
- Fuchs-Schundeln, Nicola & Alesina, Alberto, 2007. "Good-Bye Lenin (Or Not?): The Effect of Communism on People's Preferences," Scholarly Articles 4553032, Harvard University Department of Economics.
- Michael Wyrwich, 2010.
"Regional Entrepreneurial Heritage in a Socialist and a Post-Socialist Economy,"
DRUID Working Papers
10-20, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Michael Wyrwich, 2012. "Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy," Economic Geography, Clark University, vol. 88(4), pages 423-445, October.
- Michael Wyrwich, 2011. "Regional Entrepreneurial Heritage in a Socialist and Post-socialist Economy," ERSA conference papers ersa10p495, European Regional Science Association.
- Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
- Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
- Falck, Oliver & Heblich, Stephan & Link, Susanne, 2012.
"Forced Migration and the Effects of an Integration Policy in Post-WWII Germany,"
Munich Reprints in Economics
20635, University of Munich, Department of Economics.
- Falck Oliver & Heblich Stephan & Link Susanne, 2012. "Forced Migration and the Effects of an Integration Policy in Post-WWII Germany," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-29, May.
- Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
- Hillman, Arye L., 1994. "The transition from socialism: An overview from a political economy perspective," European Journal of Political Economy, Elsevier, vol. 10(1), pages 191-225, May.
- repec:ese:iserwp:2006-31 is not listed on IDEAS
- Smallbone, David & Welter, Friederike, 2001. " The Distinctiveness of Entrepreneurship in Transition Economies," Small Business Economics, Springer, vol. 16(4), pages 249-62, June.
- Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, March.
- Stefan Bauernschuster & Helmut Rainer, 2012.
"Political regimes and the family: how sex-role attitudes continue to differ in reunified Germany,"
Journal of Population Economics,
Springer, vol. 25(1), pages 5-27, January.
- Bauernschuster, Stefan & Rainer, Helmut, 2011. "Political regimes and the family: How sex-role attitudes continue to differ in reunified Germany," Munich Reprints in Economics 20152, University of Munich, Department of Economics.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:28:y:2012:i:4:p:485-497. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.