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Community Origins of Industrial Entrepreneurship in Pre-Independence India

Bishnupriya Gupta, Dilip Mookherjee (), Kaivan Munshi and Mario Sanclemente
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Bishnupriya Gupta: University of Wawick
Dilip Mookherjee: Boston University
Kaivan Munshi: University of Cambridge
Mario Sanclemente: University of Warwick

No dp-318, Boston University - Department of Economics - The Institute for Economic Development Working Papers Series from Boston University - Department of Economics

Abstract: We argue that community networks played an important role in the emergence of Indian entrepreneurship in the early stages of the cotton textile and jute industry in the late 19th and early 20th century respectively, overcoming the lack of market institutions and government support. From business registers, we construct a yearly panel dataset of entrepreneurs in these two industries. We find no evidence of entry patterns being affected by price shocks or pre-industrial accumulation of wealth or experience in trading in the corresponding upstream sector. Firm directors exhibited a high degree of clustering of entrepreneurs by community. The dynamics of entry is consistent with a model of network-based dynamics.

New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-his and nep-sbm
Date: 2018-12
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http://people.bu.edu/dilipm/wkpap/CottonEntrDec2018v4.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:bos:iedwpr:dp-318

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