Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • Article
  • Regional Studies

Spatial Determinants of Entrepreneurship in India

By: Ejaz Ghani, William R. Kerr and Stephen O'Connell
  • Format:Print
ShareBar

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.

Keywords

Agglomeration; Development; Entrepreneurship; Manufacturing Industry; Service Industry; India; South Asia

Citation

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 (2014): 1071–1089.
  • Read Now

About The Author

William R. Kerr

Entrepreneurial Management
→More Publications

More from the Authors

    • 2022
    • Harvard Business Review (website)

    The Great Resignation Didn't Start with the Pandemic

    By: Joseph B. Fuller and William R. Kerr
    • March 2022
    • Faculty Research

    The Labor Market as COVID Recedes: A Great Resignation or a Great Realization?

    By: Joseph B. Fuller, William R. Kerr and Ria Mazumdar
    • March 2022
    • Faculty Research

    Can Papaya Global Keep Growing?

    By: Daniel Isenberg and William R. Kerr
More from the Authors
  • The Great Resignation Didn't Start with the Pandemic By: Joseph B. Fuller and William R. Kerr
  • The Labor Market as COVID Recedes: A Great Resignation or a Great Realization? By: Joseph B. Fuller, William R. Kerr and Ria Mazumdar
  • Can Papaya Global Keep Growing? By: Daniel Isenberg and William R. Kerr
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College