Community Origins of Industrial Entrepreneurship in Pre-Independence India
Kaivan Munshi and
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Bishnupriya Gupta: University of Warwick
Dilip Mookherjee: Boston University
Kaivan Munshi: University of Cambridge
Mario Sanclemente: University of Warwick
CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)
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 textile industries 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 that entry is affected by prior trading experience or price shocks 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.
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