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Spatial Determinants of Entrepreneurship in India / Ejaz Ghani, William R. Kerr, Stephen D. O'Connell.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Ghani, Ejaz.
Contributor:
National Bureau of Economic Research.
Kerr, William R.
O'Connell, Stephen D.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17514.
NBER working paper series no. w17514
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
We analyze the spatial determinants of entrepreneurship in India in the manufacturing and services sectors. Among general district traits, quality of physical infrastructure and workforce education are the strongest predictors of entry, with labor laws and household banking quality also playing important roles. Looking at the district-industry level, we find extensive evidence of agglomeration economies among manufacturing industries. In particular, supportive incumbent industrial structures for input and output markets are strongly linked to higher establishment entry rates. We also find substantial evidence for the Chinitz effect where small local incumbent suppliers encourage entry. The importance of agglomeration economies for entry hold when considering changes in India's incumbent industry structures from 1989, determined before large-scale deregulation began, to 2005.
Notes:
Print version record
October 2011.

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