Discrimination or Social Networks? Industrial Investment in Colonial India
AbstractIndustrial investment in Colonial India was segregated by the export oriented industries, such as tea and jute that relied on British firms and the import substituting cotton textile industry that was dominated by Indian firms. The literature emphasizes discrimination against Indian capital. Instead informational factors played an important role. British entrepreneurs knew the export markets and the Indian entrepreneurs were familiar with the local markets. The divergent flows of entrepreneurship can be explained by the comparative advantage enjoyed by social groups in information and the role of social networks in determining entry and creating separate spheres of industrial investment. JEL classification: JEL codes:
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 1019.
Date of creation: 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-ENT-2013-09-26 (Entrepreneurship)
- NEP-HIS-2013-09-26 (Business, Economic & Financial History)
- NEP-SOC-2013-09-26 (Social Norms & Social Capital)
- NEP-URE-2013-09-26 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
- Fafchamps, Marcel & Minten, Bart, 1998.
"Relationships and traders in Madagascar,"
MTID discussion papers
24, International Food Policy Research Institute (IFPRI).
- Portes, Richard & Rey, Helene & Oh, Yonghyup, 2001. "Information and capital flows: The determinants of transactions in financial assets," European Economic Review, Elsevier, vol. 45(4-6), pages 783-796, May.
- Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64(s1), pages 76-98, February.
- Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
- Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
- Morris, Morris David, 1967. "Values as an Obstacle to Economic Growth in South Asia: An Historical Survey," The Journal of Economic History, Cambridge University Press, vol. 27(04), pages 588-607, December.
- Kaivan Munshi, 2011. "Strength in Numbers: Networks as a Solution to Occupational Traps," Review of Economic Studies, Oxford University Press, vol. 78(3), pages 1069-1101.
- Morris, Morris David, 1979. "South Asian entrepreneurship and the rashomon effect, 1800-1947," Explorations in Economic History, Elsevier, vol. 16(3), pages 341-361, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.