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The Geography and Determinants of Entrepreneurship

Author

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  • Jagannadha Pawan Tamvada

    () (Max Planck Institute of Economics, Jena)

Abstract

Entrepreneurship literature (Parker 2004) has rarely considered spatial location as a micro-determinant of occupational choice, although there are compelling reasons to posit that spatial location influences economic behavior. Using Bayesian semiparametric methodologies and geoadditive techniques, we examine spatial location as a micro-determinant of self-employment choice of Indians, in addition to standard determinants such as age, gender and education. The empirical analysis suggests the presence of spatial occupational neighborhoods and a clear north-south divide in self-employment choice in India when individuals of agricultural and nonagricultural sectors are considered together; however, such spatial patterns are less pronounced when individuals in nonagriculture alone are considered in the analysis. These residual spatial patterns are found to be inversely related to the per-capita GDP of the region. The results further suggest nonlinear relationships between age, wealth and the probability of self-employment.

Suggested Citation

  • Jagannadha Pawan Tamvada, 2008. "The Geography and Determinants of Entrepreneurship," Jena Economic Research Papers 2008-026, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2008-026
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    File URL: http://zs.thulb.uni-jena.de/receive/jportal_jparticle_00098698
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    Cited by:

    1. Tamvada, Jagannadha Pawan, 2010. "The Dynamics of Self-employment in a Developing Country: Evidence from India," MPRA Paper 20042, University Library of Munich, Germany.

    More about this item

    Keywords

    Entrepreneurship; Self-employment; Developing Countries; Bayesian Semiparametric Methods; Geoadditive Models;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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