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The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany

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  • Michael Fritsch

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Wyrwich

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and link this measure to economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid- 1920s have higher start-up rates about 80 years later. Furthermore, we find that the effect of current start-up activity on regional employment is significantly higher in regions with a pronounced entrepreneurial culture. We conclude that a regional culture of entrepreneurship is an important resource for regional growth.

Suggested Citation

  • Michael Fritsch & Michael Wyrwich, 2014. "The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany," Jena Economic Research Papers 2014-014, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2014-014
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    1. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9866-6 is not listed on IDEAS
    2. repec:wsi:jecxxx:v:26:y:2018:i:03:n:s0218495818500103 is not listed on IDEAS
    3. Michael Fritsch & Sandra Kublina, 2015. "Entrepreneurship,Growth, Regional Growth Regimes," Jena Economic Research Papers 2015-002, Friedrich-Schiller-University Jena.
    4. Balázs Páger, 2014. "The entrepreneurial performance of the Central and Eastern European regions," ERSA conference papers ersa14p1631, European Regional Science Association.
    5. Michael Fritsch & Michael Wyrwich, 2016. "Does persistence in start-up activity reflect persistence in social capital?," Chapters,in: Handbook of Social Capital and Regional Development, chapter 4, pages 82-107 Edward Elgar Publishing.
    6. Obschonka, Martin & Stuetzer, Michael & Gosling, Samuel D. & Rentfrow, Peter J. & Lamb, Michael E. & Potter, Jeff & Audretsch, David B., 2015. "Entrepreneurial Regions: do macro-psychological Cultural Characteristics of Regions help solve the “Knowledge Paradox” of Economics?," MPRA Paper 65202, University Library of Munich, Germany.
    7. Holz, Michael & Levering, Britta & May-Strobl, Eva & Kasdorf, Alina, 2017. "Neue Ansätze für die Mittelstandspolitik: Impulse von internationalen Good-Practice-Beispielen," IfM-Materialien 262, Institut für Mittelstandsforschung (IfM) Bonn.

    More about this item

    Keywords

    Entrepreneurship; economic development; self-employment; new business formation; entrepreneurship culture; institutions;

    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
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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