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Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship
Authors: Bauernschuster, Stefan
Falck, Oliver
Gold, Robert
Heblich, Stephan
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Keywords: Self-reliance
Issue Date: Dec-2012
Publisher: Elsevier
Citation: Bauernschuster S, Falck O, Gold R & Heblich S (2012) The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship, European Journal of Political Economy, 28 (4), pp. 485-497.
Abstract: We provide empirical evidence that the experience of a socialist regime leads to a lack of self-reliance by comparing East and West Germans conditional on regional differences in current economic development. This meaningful lack of self-reliance persists after the regime's breakdown and hinders the development of an entrepreneurial spirit, which might hamper the transition process. Since East Germany adopted the formal institutions of a market economy quasi overnight when reunifying with West Germany, we avoid simultaneity issues regarding current institutions and preferences. Further tentative evidence suggests that the socialist regime also affected the composition of the East German population by inducing selective migration before the construction of the Berlin Wall in 1961.
Type: Journal Article
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Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: University of Munich
Ifo Institute for Economic Research, Germany
Max Planck Institute of Economics

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