If and only if necessary macroeconomic conditions are satisfied. Necessary conditions:

• If and only if necessary macroeconomic conditions are satisfied. Necessary conditions:

• • “good” macroeconomic policies: trade openness, budget surplus, and low inflation (not robust).
  • CPIA of the World Bank, 20 dimensions. Difficult to entangle.

• “Location, location, location”: “Good” geography.

• Not local conditions but diminishing returns.

• Local financial market development.