COAGGLOMERATION AND NEW ECONOMIC ACTIVITY: EVIDENCE FROM FORMAL AND INFORMAL MANUFACTURING FIRMS

Aasheerwad Dwivedi, A. Dubey
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Abstract

For much of the twentieth century the predominant belief was that informal entrepreneurship would disappear with higher rates of economic growth. However, the informal sector has persisted in most countries and has grown in some, which calls for a re-evaluation of the existing notions of informal entrepreneurship. An important strand of literature in the form of structuralist and neo-liberal theory provides an alternative explanation. We use the coagglomeration framework to understand the relevance of these theories in the case of India. Using firm-level data, we use the Coagglomeration index to calculate the tendency of formal and informal firms to locate in the same region. We also calculate three types of linkages between formal and informal sectors: buyer-supplier, labor and technology. Further, we use panel data to estimate the relative importance of these linkages in explaining coagglomeration between formal and informal manufacturing firms. We find that coagglomeration in India is driven by buyer-supplier linkage. We then use count data models to determine the effect of coagglomeration and agglomeration measures on new firm birth in the formal and informal sector. We find that coagglomeration positively affects new firm birth in the formal sector but not in the informal sector. The evidence provided in the paper supports the structuralist theory.
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聚集与新经济活动:来自正规和非正规制造企业的证据
在20世纪的大部分时间里,主流的信念是,非正式的企业家精神将随着经济增长率的提高而消失。但是,非正规部门在大多数国家持续存在,在一些国家有所增长,因此需要重新评价现有的非正规企业概念。以结构主义和新自由主义理论为形式的重要文学流派提供了另一种解释。我们使用混凝框架来理解这些理论在印度案例中的相关性。利用企业层面的数据,我们使用凝聚指数来计算正规企业和非正规企业在同一地区的分布趋势。我们还计算了正规部门和非正规部门之间的三种联系:买方-供应商、劳动力和技术。此外,我们使用面板数据来估计这些联系在解释正规和非正规制造企业之间凝聚的相对重要性。我们发现印度的混凝是由买方-供应商联系驱动的。然后,我们使用计数数据模型来确定凝聚和集聚措施对正规和非正规部门新企业诞生的影响。研究发现,企业凝聚对正规部门的新企业诞生有积极影响,而对非正规部门的新企业诞生没有积极影响。本文提供的证据支持结构主义理论。
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来源期刊
CiteScore
2.10
自引率
0.00%
发文量
24
期刊介绍: The Journal of Developmental Entrepreneurship (JDE) provides a forum for the dissemination of descriptive, empirical, and theoretical research that focuses on issues concerning microenterprise and small business development, especially under conditions of adversity. The intended audiences for JDE are scholars who study issues of developmental entrepreneurship and professionals involved in governmental and non-governmental efforts to facilitate entrepreneurship in economic and community development programs around the world. Articles will cover a broad range of topics, including: -Entrepreneurship and self-employment in developing contexts -Challenges and opportunities unique to minority and women entrepreneurs -Microenterprise funds and private-sector small business lending practices -Legislation, regulation, and tax policy that impact entrepreneurship and economic development -Processes that facilitate growth and development within emerging enterprises -Networks within and among entrepreneurial ventures -Marketing patterns and approaches in venture growth and development -International developmental entrepreneurship programs -Entrepreneurship in the informal economic sector -Education and training for aspiring entrepreneurs -Industry practices that adversely affect microenterprise development -Economic and social impacts of microenterprise activity
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