Nber Working Paper Series Spatial Determinants of Entrepreneurship in India
نویسندگان
چکیده
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. Ejaz Ghani South Asia PREM The World Bank Washington D.C. [email protected] William R. Kerr Harvard Business School Rock Center 212 Soldiers Field Boston, MA 02163 and NBER [email protected] Stephen D. O'Connell City University of New York Department of Economics The Graduate Center 365 Fifth Ave New York, NY 10016-4309 [email protected]
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