The Geography and Determinants of Entrepreneurship

Jagannadha Tamvada

No 2008-026, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: Entrepreneurship literature (Parker 2004) has rarely considered spatial location as a micro-determinant of occupational choice, although there are compelling reasons to posit that spatial location influences economic behavior. Using Bayesian semiparametric methodologies and geoadditive techniques, we examine spatial location as a micro-determinant of self-employment choice of Indians, in addition to standard determinants such as age, gender and education. The empirical analysis suggests the presence of spatial occupational neighborhoods and a clear north-south divide in self-employment choice in India when individuals of agricultural and nonagricultural sectors are considered together; however, such spatial patterns are less pronounced when individuals in nonagriculture alone are considered in the analysis. These residual spatial patterns are found to be inversely related to the per-capita GDP of the region. The results further suggest nonlinear relationships between age, wealth and the probability of self-employment.

Keywords: Entrepreneurship; Self-employment; Developing Countries; Bayesian Semiparametric Methods; Geoadditive Models (search for similar items in EconPapers)
JEL-codes: J24 J43 J44 L26 (search for similar items in EconPapers)
Date: 2008-03-20
New Economics Papers: this item is included in nep-cwa, nep-ent, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-026

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