Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36337
Authors: 
Estrin, Saul
Mickiewicz, Tomasz
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers 4805
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.
Subjects: 
Entrepreneurship
formal and informal sectors
shadow economy
institutional arrangements
comparative studies of countries
JEL: 
L26
O17
O57
Document Type: 
Working Paper

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