Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/97111 
Year of Publication: 
2014
Series/Report no.: 
Economics Discussion Papers No. 2014-21
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
The formation of new firms is an important determinant of economic development and the industrial organization literature highlights agglomeration as one of the main factors affecting the formation and scale of operations of new firms. This paper is one of the first to use developing country data to estimate the impact of localization (the benefits accruing to firms that choose to locate in a specific region within a specific industry) and urbanization (the benefits accruing to firms located close to each other regardless of the type of industry to which they belong) on new firms' formation and scale of operations. Our findings reveal that agglomeration measured through density of employment has a significant impact on the formation of new firms and on their scale of operations in Punjab.
Subjects: 
agglomeration
firms
localization
urbanization
JEL: 
L1
L2
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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