The effect of changes in the economic structure on entrepreneurial activity in a transition economy: the case of Poland
DOI:
https://doi.org/10.24136/eq.2020.003Keywords:
structural changes, entrepreneurial activity, transition economy, service sectorAbstract
Research background: While entrepreneurship in transition economies is the subject of a growing body of literature, the debate on factors influencing entrepreneurial activity in such economies is still incomplete. This paper extends this debate by focusing on the effect of changes in the economic structure on entrepreneurship in Poland. The findings might be supportive for policymakers in pursuing policy aimed at boosting entrepreneurship in a transition economy.
Purpose of the article: The aim of the paper is to investigate the extent to which changes in the economic structure impact entrepreneurial activity in Poland. The paper contributes to the literature by providing empirical support to the pending research efforts to recognize entrepreneurship dimensions in a transition economy.
Methods: The hypothesis was tested with fixed effects panel regression with robust standard errors. Data were sourced from the Statistics Poland for all Polish NUTS?2 regions for the period 2003?2017. Panel data are balanced and include 3 600 observations.
Findings & Value added: This paper extends previous research on factors affecting entrepre-neurial activity in a transition economy by focusing on the importance of changes in the economic structure for new firm creation. The findings provide evidence of the significant value of the service sector in boosting entrepreneurial activity in Poland. The findings might attract attention of policymakers. Fostering structural change towards smart specialization in services should be regarded when constituting programmes supporting entrepreneurship.
Downloads
References
Ahunov, M., & Yusupov, N. (2017). Risk attitudes and entrepreneurial motivations: Evidence from transition economies. Economics Letters, 160. doi: 10.1016/j.econlet.2017.08.016.
DOI: https://doi.org/10.1016/j.econlet.2017.08.016
View in Google Scholar
Alonso-Carrera, J. & Raurich, X. (2015). Demand-based structural change and balanced economic growth. Journal of Macroeconomics, 46. doi: 10.1016/j.jmacro.2015.10.005.
DOI: https://doi.org/10.1016/j.jmacro.2015.10.005
View in Google Scholar
Bosma, N., & Schutjens, V. (2011). Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe. Annals of Regional Science, 47(3). doi: 10.1007/s00168-010-0375-7.
DOI: https://doi.org/10.1007/s00168-010-0375-7
View in Google Scholar
Cai, W. (2015). Structural change accounting with labour market distortions. Journal of Economic Dynamics & Control, 57. doi: 10.1016/j.jedc.2015.05.006.
DOI: https://doi.org/10.1016/j.jedc.2015.05.006
View in Google Scholar
Ciarli, T., & Valente, M. (2016). The complex interactions between economic growth and market concentration in a model of structural change. Structural Change and Economic Dynamics, 38. doi: 10.1016/j.strueco.2016.04.006.
DOI: https://doi.org/10.1016/j.strueco.2016.04.006
View in Google Scholar
Earle, J. S., & Sakova, Z. (2000). Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies. Labour Economics, 7(5). doi: 10.1016/S0927-5371(00)00014-2.
DOI: https://doi.org/10.1016/S0927-5371(00)00014-2
View in Google Scholar
Estrin, S., & Mickiewicz, T. M. (2010). Entrepreneurship in transition economies; the role of institutions and generational change. UCL SSEES Centre for Comparative Economics. Economics Working Paper 106.
DOI: https://doi.org/10.2139/ssrn.1570423
View in Google Scholar
Fernandes, A. M. (2009). Structure and performance of the service sector in transition economies. Economics of Transition, 17(3). doi: 10.1111/j.1468-0351. 2009.00355.x.
DOI: https://doi.org/10.1111/j.1468-0351.2009.00355.x
View in Google Scholar
Fritsch, M., Bublitz, E., Sorgner, A., & Wyrwich, M. (2014). How much of a socialist legacy? The re-emergence of entrepreneurship in the East German transformation to a market economy. Small Business Economics, 43(2). doi: 10.1007/s11187-014-9544-x.
DOI: https://doi.org/10.1007/s11187-014-9544-x
View in Google Scholar
Fritch, M., & Falck, O. (2007). New business formation by manufacturing over space and time: a multidimensional analysis. Regional Studies, 41(2). doi: 10.1080/00343400600928301.
DOI: https://doi.org/10.1080/00343400600928301
View in Google Scholar
Gajewski, P., & Kutan, A. M. (2018). Determinants and economic effects of new firm creation: evidence from Polish regions. Eastern European Economics, 56(3). doi: 10.1080/00128775.2018.1442226.
DOI: https://doi.org/10.1080/00128775.2018.1442226
View in Google Scholar
Gries, T., & Naudé, W. (2008). Entrepreneurship and structural economic transformation. Research Paper / UNU-WIDER, 2008.62.
View in Google Scholar
Gurgul, H., & Lach, Ł. (2015). Key sectors in the post-communist CEE economies: What does the transition data say? Communist and Post-Communist Studies, 48(1). doi: 10.1016/j.postcomstud.2014.12.001.
DOI: https://doi.org/10.1016/j.postcomstud.2014.12.001
View in Google Scholar
Kitov, I.O. (2009). Modelling the evolution of real per capita during the transition from a socialist to capitalist economic system. Journal of Applied Economic Sciences, 4(4).
View in Google Scholar
McMillan, J., & Woodruff, C. (2002). The central role of entrepreneurs in transition economies. Journal of Economic Perspectives, 16(3).
DOI: https://doi.org/10.1257/089533002760278767
View in Google Scholar
Neffke, F., Hartog, M., Boschma, R., & Henning, M. (2018). Agents of structural change: the role of firms and entrepreneurs in regional diversification. Economic Geography, 94(1). doi: 10.1080/00130095.2017.1391691.
DOI: https://doi.org/10.1080/00130095.2017.1391691
View in Google Scholar
Pietrzak, M. B., Balcerzak, A. P., Gajdos, A., & Arendt, Ł.(2017). Entrepreneurial environment at regional level: the case of Polish path towards sustainable socio-economic development, Entrepreneurship and Sustainability Issues, 5(2), doi: https://doi.org/10.9770/jesi.2017.5.2(2).
DOI: https://doi.org/10.9770/jesi.2017.5.2(2)
View in Google Scholar
Raiser, M., Schaffer, M., & Schuchhardt, J. (2004). Benchmarking structural change in transition. Structural Change and Economic Dynamics, 15(1). doi: 10.1016/S0954-349X(03)00027-4.
DOI: https://doi.org/10.1016/S0954-349X(03)00027-4
View in Google Scholar
Reynolds, P. D. (2017). When is a firm born? Alternative criteria and consequences. Business Economics, 52. doi: 10.1057/s11369-017-0022-8.
DOI: https://doi.org/10.1057/s11369-017-0022-8
View in Google Scholar
Reynolds, P., Miller, B., & Maki, W. R. (1995). Explaining regional variation in business births and deaths: U.S. 1976–88. Small Business Economics, 7(5). doi:10.1007/BF01302739.
DOI: https://doi.org/10.1007/BF01302739
View in Google Scholar
Rogalska, E. (2018). Measurement of entrepreneurship conditions in Polish regions. In T. Löster & T. Pavelka (Eds.). Conference Proceedings. The 12th International Days of Statistics and Economics. Prague.
View in Google Scholar
Smallbone, D., & Welter, F. (2001). The distinctiveness of entrepreneurship in transition economies. Small Business Economics, 16(4), doi: 10.1023/A:1011 159216578.
View in Google Scholar
Tyszka, T., Cieślik, J., Domurat, A., & Macko, A. (2011). Motivation, self-efficacy, and risk attitudes among entrepreneurs during transition to a market economy. Journal of Socio-Economics, 40(2). doi: 10.1016/j.socec.2011.01. 011.
DOI: https://doi.org/10.1016/j.socec.2011.01.011
View in Google Scholar
Vu, K. M. (2017). Structural change and economic growth: empirical evidence and policy insights from Asian economies. Structural Change and Economic Dynamics, 41. doi: 10.1016/j.strueco.2017.04.002.
DOI: https://doi.org/10.1016/j.strueco.2017.04.002
View in Google Scholar
Wagner, J., & Sternberg, R. (2004). Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data. Annals of Regional Science, 38(2). doi: 10.1007/s00168-004-0193-x.
DOI: https://doi.org/10.1007/s00168-004-0193-x
View in Google Scholar
Wennekers, S., Van Stel, A., Thurik, R., & Reynolds, P. (2005). Nascent entrepreneurship and the level of economic development. Small Business Economics, 24(3). doi: 10.1007/s11187-005-1994-8.
DOI: https://doi.org/10.1007/s11187-005-1994-8
View in Google Scholar
Xiao, J., Boschma, R., & Andersson, M. (2018). Industrial diversification in Europe: the differentiated role of relatedness. Economic Geography, 94(5). doi: 10.1080/00130095.2018.1444989.
DOI: https://doi.org/10.1080/00130095.2018.1444989
View in Google Scholar
Zygmunt, A. (2018). Do investments impact on firms’ innovation activities? Evidence from Poland and the Czech Republic. In Proceedings of the 32nd International Business Information Management Association conference (IBIMA). 15-16 November 2018, Seville, Spain. IBIMA.
View in Google Scholar
Zygmunt, J. (2018). Does level of economic growth matter in spatial diversity in entrepreneurial activity in a transition economy? A case of Poland. In Proceedings of the 32nd International Business Information Management Association conference (IBIMA). 15-16 November 2018, Seville, Spain. IBIMA.
View in Google Scholar
