Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210914 
Year of Publication: 
2019
Series/Report no.: 
IFN Working Paper No. 1272
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Do foreign venture capitalists help the domestic economy, or hamper it by slowing down growth, potentially moving economic activity away? This paper addresses this long-standing policy question by examining the differential effects of US venture capital investments on the growth of Swedish start-up companies. It finds that US venture capital results in more employment, not less. These findings continue to hold after controlling for endogenous selection effects. US investments are also accompanied by increases in local employment and start-up rates. The paper also examines effect on wages, sales, earnings, foreign subsidiaries, subsequent funding rounds, and exits. Overall there is no evidence that US venture capital investments hamper the domestic growth of Swedish companies
Subjects: 
Domestic
Employment
Foreign
International
Venture Capital
JEL: 
G24
J21
F16
F30
F65
F66
Document Type: 
Working Paper

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