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We investigate how major historical shocks affect regional trajectories of economic activity. To this end, we conduct a comparative analysis of the development of entrepreneurship in East and West Germany after World War II. The introduction of an anti-entrepreneurial socialist economy in East...
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after the transition towards a market economy. Astonishingly those regions with 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 …
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