Regional Entrepreneurial Heritage in a Socialist and Post-socialist Economy
The main aim of this paper is to enhance our knowledge of the role of regional entrepreneurial culture that is important to foster economic growth. The paper sheds light on regional differences of self-employment and start-up activities in a socialist and post-socialist economy, which is to the authorsâ€šÃ„Ã´ best knowledge a unique approach. The role of entrepreneurs in a socialist economy was marginal. Entrepreneurial activities were restricted mainly to handicrafts, retailing and gastronomy in the region of analysis of the present paper. This region is the eastern part of Germany which comprises the former socialist German Democratic Republic (GDR). It is shown by regression analysis that regions with a long industrial and entrepreneurial tradition had higher rates of self-employment in socialist times and remarkably higher start-up rates in manufacturing after the transition towards a market economy. Astonishingly those regions with a high share of traditional manufacturing industries with a long regional tradition and where entrepreneurship played an important role in pre-socialist times had higher self-employment rates in 1989. Regions with a high self-employment rate and a high share of traditional manufacturing industries in 1989 have higher start-up rates in manufacturing even more than 10 years after transition and a vast structural change in between. This result holds when controlling for industry structure and several other regional factors. Thus, even the â€šÃ„Ãºnatural experimentâ€šÃ„Ã¹ of four decades of socialism and one of the most severe industrial restructuring and decline of an economy in the 20th century could not destroy the entrepreneurial climate of regions. It seems that some regions have a certain entrepreneurial heritage, which is an important regionally embedded resource. An important implication for policy is that it seems to be long lasting task to turn entrepreneurial laggards into entrepreneurial hotspots since far reaching developments in industrial history seem to matter.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Fritsch & Oliver Falck, 2007.
"New Business Formation by Industry over Space and Time: A Multidimensional Analysis,"
Taylor & Francis Journals, vol. 41(2), pages 157-172.
- 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.
- 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.
- Hans-Werner Sinn, 2000.
"Germany's Economic Unification. An Assessment after Ten Years,"
CESifo Working Paper Series
247, CESifo Group Munich.
- Sinn, Hans-Werner, 2002. "Germany's Economic Unification: An Assessment after Ten Years," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 113-28, February.
- Hans-Werner Sinn, 2000. "Germany's Economic Unification: An Assessment after Ten Years," NBER Working Papers 7586, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 2002. "Germany’s Economic Unification: An Assessment after Ten Years," Munich Reprints in Economics 19643, University of Munich, Department of Economics.
- 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.
- 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.
- Fritsch, Michael, 2004.
"Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany,"
Freiberg Working Papers
2004,09, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Michael Fritsch, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 525-542, December.
- 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.
- 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.
- Florax, Raymond J. G. M. & Folmer, Hendrik & Rey, Sergio J., 2003.
"Specification searches in spatial econometrics: the relevance of Hendry's methodology,"
Regional Science and Urban Economics,
Elsevier, vol. 33(5), pages 557-579, September.
- 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.
- 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.
- 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.
- 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.
- David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p495. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.