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:
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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)
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