Do Entry Costs Provide an Empirical Basis for Poverty Traps? Evidence from Mexican Microenterprises
Datos Bibliográficos
| ID | 4360469 |
|---|---|
| Autores | David Mckenzie (0000-0002-1885-2426), David J Mckenzie (0000-0003-0961-9101), Christopher Woodruff (0000-0003-3471-7520, University of California San Diego) |
| Año | 2006 |
| Volumen | 55 |
| Número | 1 |
| Páginas | 3-42 |
| Fecha de publicación | 2006-10-01 |
| Peer Reviewed | Sí |
| Open Access | No |
| Tipo | ARTICLE |
| Revista | Economic Development and Cultural Change (JOURNAL) |
| Identificadores de la revista | ISSN: 0013-0079 • E-ISSN: 1539-2988 |
| Editorial | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/505725 |
| OpenAlex | W2076822181 |
| Idioma | EN |
| Citas recibidas | 56 |
| Referencias citadas | 23 |
Recent theoretical literature in development economics has shown that nonconvex production technologies can result in low‐growth poverty traps. This article uses detailed microenterprise surveys in Mexico to examine the empirical evidence for these nonconvexities at low levels of capital stock. While theory emphasizes nondivisible start‐up costs that exceed the wealth of many potential entrepreneurs, this article shows start‐up costs to be very low in some industries. Semiparametric methods are then used to flexibly estimate returns to capital in microenterprises. Much higher returns are found at low levels of capital stock than at higher levels, and this remains true after controlling for firm characteristics and measures of entrepreneurial ability. Overall, little evidence of production nonconvexities is found at low levels of capital. The absence of nonconvexities is a significant finding because it suggests that access to start‐up capital does not determine the ultimate size of the enterprise
Capital (architecture) · Demographic economics · Economic growth · Economics · Empirical evidence · Human capital · Labour economics · Microeconomics · Physical capital · Poverty · Production (economics) · Stock (firearms) · Economic Growth and Productivity · Firm Innovation and Growth · Innovation and Socioeconomic Development
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| Obras citantes distintas | 56 |
|---|---|
| Citas por año | 2,67 |
| Intervalo de citas | 2005 - 2023 (19) |
| Velocidad de citación | historical |
| Altamente citado | No |
| Tipos de cita | Neutras: 50 |