IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Firm Creation and Economic Transitions

  • John E. Jackson
  • Jacek Klich
  • Krystyna Poznanska
Registered author(s):

    Virtually all industrial countries are experiencing some form of transformation in their economies, from the dramatic move from centrally planned to market economies in East-central Europe, to the rebuilding of the economies in the so-called Rust Belt of the USA, to the efforts by Asian countries to return to their recent high growth levels. The analysis builds on the work of Schumpeter, Hannan and Freeman, and Kornai to develop a picture of an economy as an evolutionary process in which the creation, survival and growth of firms is the key to continued growth. This entrepreneurial activity is vital to successful transformations at critical points when the existing enterprises are not well suited to market conditions - what Schumpeter refers to as creative destruction. This paper uses detailed data on the transitions in the Polish and Michigan economies to present evidence to support these propositions. Showing that the successful transformation of two economies with obvious historical differences both depended upon the creation of new firms rather than on the restructuring of existing firms shows that entrepreneurial activity is a universal necessity.

    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.

    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp238.pdf
    Download Restriction: no

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 238.

    as
    in new window

    Length: pages
    Date of creation: 01 Jul 1998
    Date of revision:
    Handle: RePEc:wdi:papers:1998-238
    Contact details of provider: Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109
    Phone: 734 763-5020
    Fax: 734 763-5850
    Web page: http://www.wdi.umich.edu
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wdi:papers:1998-238. 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: (Laurie Gendron)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.