Informal Social Networks and Spatial Mobility
Peter Bönisch, Lutz Schneider
Post-Communist Economies,
2010
Abstract
Individuals’ preferences in transition regions are still shaped by the former communist system. We test this ‘communist legacy’ hypothesis by examining the impact of acculturation in a communist regime on social network participation and, as a consequence, on preferences for spatial mobility. We focus on the paradigmatic case of Eastern Germany, where mobility intentions seem to be substantially weaker than in the Western part. Applying an IV ordered probit approach we first find that Eastern people acculturated in a communist system are more invested in locally bounded informal social capital than Western people. Second, we confirm that membership in such locally bounded social networks reduces the intention to move away. Third, after controlling for the social network effect the mobility gap between East and West is substantially reduced. Low spatial mobility of the Eastern population, we conclude, is to an important extent attributable to a social capital endowment characteristic of post-communist economies
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Why are East Germans not More Mobile? Analyzing the Impact of Social Ties on Regional Migration
Peter Bönisch, Lutz Schneider
Abstract
Individuals’ preferences in transition regions are still shaped by the former communist system. We test this ‘Communism legacy’ hypothesis by examining the impact of acculturation in a communist regime on social network participation and, as a consequence, on preferences for spatial mobility. We focus on the paradigmatic case of East Germany where mobility intentions seem to be substantially weaker than in the western part. Applying an IV ordered probit approach we firstly find that East German people acculturated in a Communist system are more invested in locally bounded informal social capital than West Germans. Secondly, we confirm that membership in such locally bounded social networks reduces the intention to move away. Thirdly, after controlling for the social network effect the mobility gap between East and West substantially reduces. Low spatial mobility of the eastern population, we conclude, is to an important part attributable to a social capital endowment characteristic to post-communist economies.
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FDI and the National Innovation System - Evidence from Central and Eastern Europe
Jutta Günther, Björn Jindra, Johannes Stephan
D. Dyker (ed.), Network Dynamics in Emerging Regions of Europe, Imperial College Press,
2010
Abstract
The paper investigates strategic motives, technological activities and determinants of foreign investment enterprises’ embeddedness in post-transition economies (Eastern Germany and selected Central East European countries). The empirical study makes use of the IWH FDI micro database. Results of the descriptive analysis of investment motives show that market access dominates over efficiency seeking and other motives. The majority of investors are technologically active in the region as a whole, but countries differ in terms of performance. The probit model estimations show that firm specific characteristics, among them innovativeness and autonomy from parent company, are important determinants of foreign investment enterprises’ embeddedness.
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Interactive Dynamic Capabilities and Regenerating the East German Innovation System
N. von Tunzelmann, Jutta Günther, Katja Wilde, Björn Jindra
Contributions to Political Economy,
2010
Abstract
The paper sets out a specification of capabilities and competencies derived from Sen’s work on consumer capabilities and welfare economics. This approach is one that proves remarkably easy to generalise, first to producer and supplier capabilities, and thence to interactive and dynamic capabilities. The approach is then applied via the consequential perspectives of regional systems of innovation and network alignment to the case of the efforts to regenerate the innovation system in East Germany since reunification. It is seen that this process can be divided into three periods, of which the most recent appears to meet some of the theoretical requirements for effective interactive capabilities. It is less clear that the criteria for dynamic capabilities—which involve considerations of speed-up and flexibility, to meet the market requirements in real time—have yet been taken sufficiently seriously.
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Institutional transition, social capital mix and local ties – Does Communist legacy explain low labour mobility?
Peter Bönisch, Lutz Schneider
Volkswirtschaftliche Diskussionsbeiträge, (66),
No. 66,
2010
Abstract
This paper empirically analyses the question why East Germans facing weak regional labour markets show rather limited spatial mobility. Using data from the German Socio-Economic Panel, our estimation of a simultaneous three equation ordered probit model shows that informal social capital reduces regional mobility while formal social capital supports it. Furthermore, we find that East Germans acculturated in a communist system are more invested in locally bounded informal social capital than in the mobility supporting formal social capital. Low spatial mobility of East Germans, we conclude, is to an important part attributable to a system specific social capital mix.
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20 Jahre nach dem Mauerfall: Transformation und Erneuerung des ostdeutschen Innovationssystems
Jutta Günther, Nicole Nulsch, Dana Urban-Thielicke, Katja Wilde
Studien zum deutschen Innovationssystem Nr. 16-2010,
2010
Abstract
Die Studie skizziert den Prozess der Entstehung des ostdeutschen Innovationssystems seit 1990 und bezieht in die Untersuchung auch den historischen Kontext mit ein, in dem die Struktur und die Philosophie des Forschungs- und Innovationssystems der DDR erläutert werden. Nach dem Systemumbruch wurden in den frühen 1990er Jahren durch die Privatisierung und die Transformation der Wissenschaftseinrichtungen für das heutige System wesentliche Weichen gestellt. Dabei war die Forschungs- und Innovationsförderung seit Beginn der Transformation ein wichtiger „Wegbereiter“ des ostdeutschen Innovationssystems. Aus heutiger Sicht lassen sich insbesondere drei Phasen der Forschungs- und Innovationsförderung unterscheiden: In der ersten Phase wurden noch im Jahr 1990 die „Maßnahmen der ersten Stunde“ verabschiedet, die darauf abzielten, dem massiven Rückgang der Industrieforschung in Ostdeutschland entgegen zu wirken. In der zweiten Phase (ab Mitte bzw. Ende der 1990er Jahre) erhielt die Projektförderung ein stärkeres Gewicht. Dabei gewann der Gedanke der Kooperations- bzw. der Verbundförderung zunehmend an Bedeutung. In der dritten Phase (seit ca. 2003 bis heute) ist ein weiteres Instrument der Innovationspolitik, die Netzwerkförderung, in den Vordergrund getreten. Sie stellt heute neben der Einzel- und Verbundprojektförderung einen festen Bestandteil der Förderlandschaft dar. Der lange Weg zur originären Innovationstätigkeit nach einem kompletten Systembruch lässt sich jedoch allein durch die Bereitstellung von mehr Mitteln für FuE nicht bewältigen. Die heutigen transformationsbedingten Strukturschwächen der ostdeutschen Wirtschaft lassen sich nur durch gänzlich neue Technologien überwinden. Ein neuer Technologiezyklus wird in der Lage sein, neue Industriezweige hervorzubringen. Dies zu unterstützen ist die zukünftige Aufgabe der Forschungs- und Innovationsförderung.
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Die wirtschaftliche Transformation in den neuen Ländern: Mehr als eine rein ökonomische Aufgabe
Ulrich Blum
Die Politische Meinung,
2009
Abstract
Often the rise from the ruins of socialism is only considered from an economic perspective. In fact we know that economic success relates to considerable extent to its cultural prerequisites. The article analyzes the present development of the New Lander within the perspective of pre-economic cultural imprints of East Germany. It shows for East Germany that beside the specific mixture of protestant work ethic and status seeking, which generated own “living worlds”, the different development of society, especially the middleclass basis and entrepreneurship are of special importance. In addition, the lost interest in unification by West Germany is an important factor that explains why West Germans had little interest to explain their own economic and social system. These conditions put economic performance in a critical perspective.
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Russia: A Victim to Transition or to the Financial Crisis?
Marina Grusevaja
Wirtschaft im Wandel,
No. 8,
2009
Abstract
The global financial crisis has revealed deficiencies of the Russian economic system which are caused by the path of the transformation from central planning to the market economy, and not only attributable to the downfall of crude oil prices. While the worldwide liquidity crunch impaired the availability of loans to enterprises, the situation in Russia has deteriorated especially by the large exposure of the private sector to short-term foreign liabilities and by the one-sided orientation of the economy relying on the natural resources industry. Until the mid-2008, the foreign debt of the private banks and non-banks had increased strongly and had strengthened the dependence of the Russian economy on the developments on the international financial markets. The Ruble devaluation at the end of January 2009 aggravated the situation. The high short-term foreign debt of the private sector and the dependence on exports of natural resources are typical outcomes of the Russian transformation path. Therefore, on the one hand, the banking sector has not being able to satisfy financing demand of the private sector beyond the natural resources industries, enterprises became forced to borrow short-term money abroad. On the other hand, the economic strategy of the past seventeen years has strengthened the influence of the state on the natural resources sector – with the strong priority to develop it further. Hence, the one-sided economic development negatively affects the adaptability of the real-economic sector to change during the crisis period. In essence, the present political preferences of the government are aimed at providing direct financial assistance and at protectionist measures. In the long run, these actions could lead to stronger intervention of the state in the economy. Due to these recent developments, the crisis is likely to continue in Russia longer than in the other transformation countries.
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European Commission, Leibniz Association and IWH Discuss Innovation Related Policy in Transitions Regions
Björn Jindra, Katja Wilde
Wirtschaft im Wandel,
No. 7,
2009
Abstract
On February 17, 2009, the Halle Institute for Economic Research (IWH) and the Leibniz Association (WGL) held the final conference of the EU-project “Understanding the Relationship between Knowledge and Competitiveness in the Enlarging European Union” (U-know) in Brussels. The research dealt with systemic aspects of innovation and knowledge transfer as well as the development of R&D (research and development) and innovation related policy. Thereby, a particular emphasis was put on the challenges facing the new EU member states and East Germany. The research project proved to be very productive with 54 research papers in refereed journals as well as 33 articles in edited volumes.
The aim of the conference was to present and discuss the main results of the U-know project with experts from the industry as well as the political and scientific community. Within four parallel sessions (Enterprises and markets, Public science and industry links, Systems and governance, Role of institutions), research output was presented. Representatives of the EU Commission commented directly on the presentations with a view on policy implications. In a final panel, all participants underlined the increasing importance of education, R&D, and innovation related policy to support the competitiveness of the EU-15 countries as well as the catching-up process of the new EU member states. The conference has raised significant interest both within the scientific community and the EU Commission.
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The relationship between unemployment and output in post-communist countries
Hubert Gabrisch, Herbert Buscher
Post-Communist Economies,
2006
Abstract
Unemployment is still disappointingly high in most Central and East European countries, and might be a reflection of the ongoing adjustment to institutional shocks resulting from systemic transition, or it may be caused by high labour market rigidity, or aggregate demand that is too weak. In this paper we have investigated the dynamics of unemployment and output in those eight post-communist countries, which entered the EU in 2004. We used a model related to Okun’s Law; i.e. the first differences in unemployment rates were regressed on GDP growth rates. We estimated country and panel regressions with instrument variables (TSLS) and applied a few tests to the data and regression results. We assume transition of labour markets to be accomplished when a robust relationship exists between unemployment rate changes and GDP growth. Moreover, the estimated coefficients contain information about labour market rigidity and unemployment thresholds of output growth. Our results suggest that the transition of labour markets can be regarded as completed since unemployment responds to output changes and not to a changing institutional environment that destroys jobs in the state sector. The regression coefficients have demonstrated that a high trend rate of productivity and a high unemployment intensity of output growth have been occurring since 1998. Therefore, we conclude that labour market rigidities do not play an important role in explaining high unemployment rates. However, GDP growth is dominated by productivity progress and the employment-relevant component of aggregate demand is too low to reduce the high level of unemployment substantially.
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