Spatial Determinants of Entrepreneurship in India

Ejaz Ghani (), William Kerr and Stephen O'Connell

No 17514, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: L10 L26 L60 L80 M13 O10 R00 R10 R12 (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-cis, nep-ent, nep-geo and nep-ure
Note: PR
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Citations: View citations in EconPapers (32)

Published as Ghani, Ejaz, William R. Kerr, and Stephen O'Connell. "Spatial Determinants of Entrepreneurship in India." Special Issue on Entrepreneurship in a Regional Context . Regional Studies 48, no. 6 (December 2013).

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Journal Article: Spatial Determinants of Entrepreneurship in India (2014)
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