Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90134
Authors: 
Danakol, Seçil Hülya
Estrin, Saul
Reynolds, Paul
Weitzel, Utz
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7796
Abstract: 
This paper explores the effects of foreign direct investment, measured by mergers and acquisitions, on domestic entrepreneurial entry. We use a micro‐panel of more than two thousand individuals disaggregated by industry in seventy countries including both developed and developing economies, 2000‐2009. The theory yields ambiguous predictions about the relationship between FDI and entrepreneurship; positive spillovers via dissemination of technology or negative because of crowding out. Our empirical analysis is conducted at three levels of aggregation. We find the relationship between FDI and domestic entrepreneurship in aggregate and intra‐industry to be negative. Policies need to consider how to counteract this effect.
Subjects: 
foreign direct investment
entrepreneurship
new firm entry
spillovers
JEL: 
F23
M13
L26
Document Type: 
Working Paper

Files in This Item:
File
Size
467.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.