Business Environment, Economic Agglomeration and Job Creation around the World

Based on a comprehensive worldwide firm survey, this paper looks at how the business environment and economic agglomeration affect job creation, holding constant conventional determinants of firm growth, such as firm ownership, size, and age. The analysis finds that economic agglomeration is most important, especially modern telecommunications, access to export markets, concentration of economic activity in large cities, and capacity agglomeration (the concentration of large firms in a city). Although the business environment affects job growth less than agglomeration does, some elements of the business environment matter, such as labor flexibility, unionization, and local skill levels. There is strong heterogeneity in job creation across firm size and age.

Bibliographic Details

Main Authors:	Clarke, George, Li, Yue, Xu, Lixin Colin
Language:	English en_US
Published:	World Bank, Washington, DC 2013-11
Subjects:	ACCESS TO FOREIGN MARKETS, BASIC INFRASTRUCTURE, BUSINESS ENVIRONMENT, BUSINESS ENVIRONMENTS, COMPARATIVE ADVANTAGE, COST OF CAPITAL, DEVELOPED COUNTRIES, DOMESTIC MARKET, DOMESTIC MARKETS, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMICS, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EMPLOYMENT, EMPLOYMENT GROWTH, EMPLOYMENT GROWTH RATE, ENVIRONMENTS, EXPANSION, EXPORT MARKETS, FIRING COSTS, FIRM GROWTH, FIRM LEVEL, FIRM PERFORMANCE, FIRM SIZE, FIRM SURVEY, FIRM SURVIVAL, FIRMS, FOREIGN OWNERSHIP, FOREIGN PARTNERS, FOREIGN-OWNED FIRMS, HIGH WAGES, HUMAN CAPITAL, INFLATION, INFORMAL ECONOMY, INFORMAL SECTOR, INSTITUTIONAL DEVELOPMENT, INTERMEDIATE INPUTS, INTERNATIONAL MARKETS, JOB CREATION, JOB LOSSES, JOBS, LABOR MARKETS, LABOR REALLOCATION, LABOR REGULATION, LABOR REGULATIONS, LABOR SUPPLY, LARGE CITIES, LEGISLATION, LOCAL BUSINESS, MACROECONOMIC STABILITY, MANUFACTURERS, MICROENTERPRISES, MIGRATION, PERMANENT WORKERS, POLICY MAKERS, POLITICAL ECONOMY, POSITIVE EXTERNALITIES, PREVIOUS RESULTS, PREVIOUS STUDIES, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRODUCTIVITY, REGULATORY BURDEN, SERVICE INDUSTRY, SKILLED WORKER, SKILLED WORKERS, SMALL ENTERPRISES, SMALL FIRM, SMALL FIRMS, TRAINING COSTS, TRANSITION ECONOMIES, TRANSPORT, UNION MEMBERSHIP, UNSKILLED LABOR, URBANIZATION, WAGES, WORKER, WORKERS, agglomeration,
Online Access:	http://documents.worldbank.org/curated/en/2013/11/18523268/business-environment-economic-agglomeration-job-creation-around-world https://hdl.handle.net/10986/16907
Tags:	Add Tag No Tags, Be the first to tag this record!