Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228319
Authors: 
Fritsch, Michael
Wyrwich, Michael
Year of Publication: 
2020
Series/Report no.: 
Jena Economic Research Papers No. 2020-017
Abstract: 
We investigate how initial conditions that existed in East Germany at the end of the socialist regime impact regional development during the turbulent shock transition to a market economic system. Our investigation spans a period of almost 30 years. Both the self-employment rate (an indication of the existence of a pre-socialist entrepreneurial tradition) and the share of the workforce with a tertiary degree have a strong positive effect on regional development. We conclude that knowledge and a tradition of entrepreneurship have long-run positive effects on development in regions that face disruptive shocks. Entrepreneurship and knowledge play a less important role for development across West German regions, where no significant shocks occurred.
Subjects: 
Entrepreneurship
knowledge
economic development
history
transformation
East Germany
JEL: 
L26
R11
N93
N94
Document Type: 
Working Paper

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