Spatial determinants of entrepreneurship in India
By: Ejaz Ghani, William R. Kerr, Stephen O'Connell
Contributors: Kerr, William R. (William Robert); O'Connell, Stephen; Harvard Business School
Series: Working paper / Harvard Business School -- 12-027; Working paper (Harvard Business School) -- 12-027
Publisher: Harvard Business School
Published: 2011
Place of publication: Boston]
Language: eng
Number of pages: 31
Description: 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.
Notes: "October 2011" -- Publisher's website.

Includes bibliographical references.