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Entrepreneurship in Transition Economies: The Role of Institutions and Generational Change

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  • Estrin, Saul

    () (London School of Economics)

  • Mickiewicz, Tomasz

    () (Aston University)

Abstract

The transition economies have lower rates of entrepreneurship than are observed in most developed and developing market economies. The difference is even more marked in the countries of the former Soviet Union than those of Central and Eastern Europe. We link these differences partly with the legacy of communist planning, which needs to be replaced with formal market-supporting institutions. But many of these developments have now taken place, yet entrepreneurial activity still remains low in many places. To analyse this longer term issue, we highlight the necessarily slow pace of development of new informal institutions and the corresponding social attitudes, notably rebuilding the generalised trust. We argue that changes are even slower in the former Soviet Union than Central and Eastern Europe because communist rule was much longer, leading to a lack of institutional memory. We posit that changes in informal institutions may be therefore delayed until after full generational change.

Suggested Citation

  • Estrin, Saul & Mickiewicz, Tomasz, 2010. "Entrepreneurship in Transition Economies: The Role of Institutions and Generational Change," IZA Discussion Papers 4805, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4805
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    Cited by:

    1. Djula Borozan & Josip Arneric & Ilija Coric, 0. "A comparative study of net entrepreneurial productivity in developed and post-transition economies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-26.
    2. Shurchkov, Olga, 2012. "New elites and their influence on entrepreneurial activity in Russia," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 240-255.
    3. Topalli, Margerita & Ivanaj, Silvester, 2016. "Mapping the evolution of the impact of economic transition on Central and Eastern European enterprises: A co-word analysis," Journal of World Business, Elsevier, vol. 51(5), pages 744-759.
    4. van der Zwan Peter & Verheul Ingrid & Thurik Roy, 2011. "The Entrepreneurial Ladder in Transition and Non-Transition Economies," Entrepreneurship Research Journal, De Gruyter, vol. 1(2), pages 1-20, March.
    5. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0427-2 is not listed on IDEAS
    6. Tyrowicz, Joanna, 2011. "What distinguishes entrepreneurs? Evidence on the motives for self-employment," Economics Letters, Elsevier, vol. 112(3), pages 226-229, September.
    7. repec:hig:fsight:v:11:y:2017:i:3:p:11-24 is not listed on IDEAS
    8. Joanna Tyrowicz & Joanna Nestorowicz, 2010. "Cynicism Starts Young: Age and Entrepreneurship over Transition," Working Papers 2010-02, Faculty of Economic Sciences, University of Warsaw.
    9. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and Cities: Evidence from the Post-communist World," WIFO Working Papers 397, WIFO.
    10. László Szerb & William Trumbull, 2015. "Entrepreneurship and transition in the European transition countries," ERSA conference papers ersa15p669, European Regional Science Association.
    11. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
    12. Petrik Runst, 2013. "Post-Socialist Culture and Entrepreneurship," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 593-626, July.
    13. Hinh T. Dinh & Thomas G. Rawski & Ali Zafar & Lihong Wang & Eleonora Mavroeidi, 2013. "Tales from the Development Frontier : How China and Other Countries Harness Light Manufacturing to Create Jobs and Prosperity," World Bank Publications, The World Bank, number 15763, July.
    14. Ognjenovic, Dragana & Bajramović, Sabahudin & Nikolic, Aleksandra, 2012. "Economic Performances Of Dairy Industry In Bosnia And Herzegovina In Transition," 132nd Seminar, October 25-27, 2012, Skopje, Republic of Macedonia 139499, European Association of Agricultural Economists.

    More about this item

    Keywords

    institutional arrangements; shadow economy; formal and informal sectors; entrepreneurship; comparative studies of countries;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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