How place-based institutional arrangements shape inclusive rural entrepreneurship: Evidence from China’s geographical indications system

Abstract

Knowledge-based, place-embedded intellectual property systems play an increasingly important role in shaping entrepreneurial inclusiveness and regional development. However, systematic evidence on how agricultural geographical indications (GIs) influence inclusive entrepreneurship (IE) in developing countries remains scarce. Using panel data from 279 Chinese prefecture-level cities over 2011–2022, this study examines whether and how agricultural GIs promote rural inclusive entrepreneurship and explores the underlying mechanisms. Controlling for potential endogeneity and other econometric concerns, the results indicate that agricultural GIs significantly enhance rural inclusive entrepreneurship, particularly in terms of equal access to entrepreneurial opportunities. Mechanism analysis shows that agricultural industrial agglomeration serves as a key channel through which agricultural GIs drive inclusive entrepreneurship. Furthermore, threshold regressions and spatial econometric models reveal that the positive effects of GIs exhibit nonlinear “marginally increasing” characteristics under high levels of government support and e-commerce development, and they also generate significant positive spatial spillovers on entrepreneurial activities in neighboring areas. Overall, this study provides empirical evidence on the institutional role of agricultural GIs in fostering inclusive entrepreneurship and offers policy insights for developing countries seeking to promote rural revitalization, optimize regional governance, and enhance inclusive growth.

The authors' abstract, as published at the source. Local Economy The Journal of the Local Economy Policy Unit, 2026 · DOI ↗