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Initial conditions and regional performance in the aftermath of disruptive shocks: the case of East Germany after socialism
[The knowledge spillover theory of entrepreneurship]

Author

Listed:
  • Michael Fritsch
  • Michael Wyrwich

Abstract

We investigate how specific regional conditions found in East Germany at the end of the socialist regime impact development during the turbulent shock transition to a market economy. Both the self-employment rate (an indicator of a pre-socialist entrepreneurial tradition) and the share of the workforce with a university degree (as measure of the general qualification of the workforce) have a strong positive effect on regional development. Our results show that entrepreneurship and knowledge are key regional resources for mastering disruptive historical shocks.

Suggested Citation

  • Michael Fritsch & Michael Wyrwich, 2022. "Initial conditions and regional performance in the aftermath of disruptive shocks: the case of East Germany after socialism [The knowledge spillover theory of entrepreneurship]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(6), pages 1428-1459.
    • Handle: RePEc:oup:indcch:v:31:y:2022:i:6:p:1428-1459.
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    File URL: http://hdl.handle.net/10.1093/icc/dtac033
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-

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