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Regional Entrepreneurial Heritage in a Socialist and a Post-Socialist Economy

  • Michael Wyrwich

This paper sheds light on regional differences of self-employment in a socialist economy on the eve of its transition toward a market economy and differences with regard to start-up activities after transition. It shows that regions with a long entrepreneurial tradition have higher self-employment rates than regions where these traditions played only a minor role before the introduction of a socialist centrally planned economy. These regions have also higher start-up rates after transition. It seems entirely likely that some regions have a certain entrepreneurial heritage that is an important resource embedded in the region. Even the introduction of socialism did not eradicate or reverse the geography of private sector activity. It is recommended that policy should stimulate and activate region-specific entrepreneurial potentials to attain a sustainable regional development.

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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 10-20.

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Date of creation: 2010
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Handle: RePEc:aal:abbswp:10-20
Contact details of provider: Web page: http://www.druid.dk/

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  1. Michael Fritsch, 2004. "Entrepreneurship, Entry and Performance of New Businesses Compared in two Growth Regimes: East and West Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-41, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  2. Hall, John & Ludwig, Udo, 1995. "German Unification and the 'Market Adoption' Hypothesis," Cambridge Journal of Economics, Oxford University Press, vol. 19(4), pages 491-507, August.
  3. Fritsch, Michael & Falck, Oliver, 2007. "New business formation by industry over space and time: A multidimensional analysis," Munich Reprints in Economics 20306, University of Munich, Department of Economics.
  4. Sinn, Hans-Werner, 2002. "Germany’s Economic Unification: An Assessment after Ten Years," Munich Reprints in Economics 19643, University of Munich, Department of Economics.
  5. Christine Tamasy, 2006. "Determinants of regional entrepreneurship dynamics in contemporary Germany: A conceptual and empirical analysis," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 365-384.
  6. Raymond J.G.M. Florax & Hendrik Folmer & Sergio J. Rey, 2002. "Specification Searches in Spatial Econometrics: The Relevance of Hendry's Methodology," Urban/Regional 0202001, EconWPA.
  7. 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.
  8. Audretsch, David B. & Fritsch, Michael, 1993. "A Note on the Measurement of Entry Rates," Freiberg Working Papers 1993,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  9. Yuko Aoyama, 2009. "Entrepreneurship and Regional Culture: The Case of Hamamatsu and Kyoto, Japan," Regional Studies, Taylor & Francis Journals, vol. 43(3), pages 495-512.
  10. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
  11. Vinod Sutaria & Donald A. Hicks, 2004. "New firm formation: Dynamics and determinants," The Annals of Regional Science, Springer, vol. 38(2), pages 241-262, 06.
  12. Joachim Wagner & Rolf Sternberg, 2004. "Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data," The Annals of Regional Science, Springer, vol. 38(2), pages 219-240, 06.
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