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Discrimination or social networks? Industrial investment in colonial India
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Gupta, Bishnupriya (2014) Discrimination or social networks? Industrial investment in colonial India. The Journal of Economic History , 74 (1). pp. 141-168. doi:10.1017/S0022050714000059
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Official URL: http://dx.doi.org/10.1017/S0022050714000059
Abstract
Industrial investment in colonial India was segregated by the export industries, such as tea and jute that relied on British firms and the import substituting cotton textile industry that was dominated by Indian firms. Empirical evidence in this article does not suggest that barriers to entry faced by Indian entrepreneurs created this separation. Informational asymmetry played an important role. British entrepreneurs knew the export markets and the Indian entrepreneurs were familiar with local markets. Conditional on the initial advantage in entry, social network effects determined subsequent entry of firms by ethnicity and created separate spheres of industrial investment.
| Item Type: | Journal Article | ||||||
|---|---|---|---|---|---|---|---|
| Subjects: | D History General and Old World > DS Asia H Social Sciences > HC Economic History and Conditions |
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| Divisions: | Faculty of Social Sciences > Economics | ||||||
| Library of Congress Subject Headings (LCSH): | Bombay (India) -- Economic conditions -- 19th century, Calcutta (India) -- Economic conditions -- 19th century, Bombay (India) -- Economic conditions -- 20th century, Calcutta (India) -- Economic conditions -- 20th century, Jute industry -- India, Tea trade -- India, Cotton textile industry -- India, Social networks, Discrimination | ||||||
| Journal or Publication Title: | The Journal of Economic History | ||||||
| Publisher: | Cambridge University Press | ||||||
| ISSN: | 0022-0507 | ||||||
| Official Date: | 24 February 2014 | ||||||
| Dates: |
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| Volume: | 74 | ||||||
| Number: | 1 | ||||||
| Page Range: | pp. 141-168 | ||||||
| DOI: | 10.1017/S0022050714000059 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
| Funder: | Economic and Social Research Council (Great Britain) (ESRC) | ||||||
| Grant number: | Research Grant R000239492 |
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