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One transition story does not fit them all: Initial regional conditions and new business formation after socialism

Michael Fritsch (), Maria Kristalova () and Michael Wyrwich ()
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Maria Kristalova: Friedrich Schiller University Jena

No 2020-014, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: We investigate the reasons for the pronounced regional differences of new business formation after the transformation from a socialist planned system to a market economy in East Germany. Relatively high start-up rates are found in regions that had a well-qualified workforce and a relatively high share of remaining self-employed at the end of the socialist period. This also holds for high-tech manufacturing start-ups. Based on our conclusion that policy should account for these initial regional conditions, we use two criteria to introduce a classification of regions.

Keywords: Entrepreneurship; new business formation; regional conditions; transformation; East Germany (search for similar items in EconPapers)
JEL-codes: L26 R11 N94 P25 (search for similar items in EconPapers)
Date: 2020-09-18
New Economics Papers: this item is included in nep-ent, nep-geo, nep-his, nep-isf, nep-tra and nep-ure
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