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Business environment, economic agglomeration and job creation around the world

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  • George Clarke
  • Yue Li
  • Lixin Colin Xu

Abstract

This article looks at how economic agglomeration and the business environment affect job creation. The results suggest that economic agglomeration is strongly linked to job growth. Modern telecommunications, access to export markets, concentration of economic activity in large cities and capacity agglomeration, in particular, are important. In contrast, many areas of the business environment, including corruption, macroeconomic stability and infrastructure are not robustly linked to job growth. The main exception to this is that areas of the business environment directly related to labour markets are more consistently linked to job growth than other areas of the business environment.

Suggested Citation

  • George Clarke & Yue Li & Lixin Colin Xu, 2016. "Business environment, economic agglomeration and job creation around the world," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3088-3103, July.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3088-3103
    DOI: 10.1080/00036846.2015.1136392
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    2. Joël Cariolle & Maelan Le Goff & Olicier Santoni, 2019. "Digital vulnerability and performance of firms in developing countries," Working papers 709, Banque de France.
    3. Jonathan Fu & Annette Krauss, 2024. "Preparing fertile ground: how does the quality of business environments affect MSE growth?," Small Business Economics, Springer, vol. 63(1), pages 51-103, June.
    4. Maria E. Soppelsa & Nancy Lozano-Gracia & L. Colin Xu, 2021. "The Effects of Pollution and Business Environment on Firm Productivity in Africa," International Regional Science Review, , vol. 44(2), pages 203-228, March.
    5. Fang, Sheng & Goh, Chorching & Roberts, Mark & Xu, Lixin Colin & Zeufack, Albert, 2022. "Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality," World Development, Elsevier, vol. 154(C).
    6. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2018. "Broadband infrastructure deployment, digital vulnerability, and local firm performance in developing and transition countries," Post-Print hal-01758660, HAL.

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