The Determinants of Entrepreneurship in a Conflict Region
Evidence from the Chittagong Hill Tracts in Bangladesh
The Chittagong Hill Tracts (CHT) region in Bangladesh is a conflict-torn area. This paper aims to identify the determinants of entrepreneurship at the household level in the CHT region and contrast these with the determinants of entrepreneurship in the non-conflict mainland region. The analysis is based on the Household Income and Expenditure Survey 2005 data set (N=10,080). Using descriptive statistics and probit regression results, it is found that the probability that a household will own a business in the CHT region is 11 percent lower in comparison to that of a household elsewhere in Bangladesh. Moreover, starting a business in the CHT region requires more capital, and violent conflict and geo-cultural characteristics are particularly discouraging for entrepreneurship.