Michelacci, Claudio and Silva, Olmo 
ORCID: 0009-0005-6918-2206
(2007)
Why so many local entrepreneurs?
Review of Economics and Statistics, 89 (4).
615 - 633.
ISSN 0034-6535
Abstract
We document that the fraction of entrepreneurs working in the region where they were born is significantly higher than the corresponding fraction for dependent workers. This is more pronounced in more developed regions and positively related to the degree of local financial development. Firms created by locals are bigger, operate with more capital-intensive technologies, and obtain greater financing per unit of capital invested, than firms created by nonlocals. This suggests that there are so many local entrepreneurs because locals can better exploit the financial opportunities available in the region where they were born. This helps to explain how local financial development causes persistent disparities in entrepreneurial activity, technology, and income.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.mitpressjournals.org/loi/rest |
| Additional Information: | © 2007 The President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 15 Dec 2010 09:50 |
| Last Modified: | 26 Nov 2024 08:45 |
| URI: | http://eprints.lse.ac.uk/id/eprint/30768 |
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