Foreign direct investment and domestic entrepreneurship: blessing or curse?

Estrin, Saul, Hülya Danakol, Seçil, Reynolds, Paul and Weitzel, Utz (2014) Foreign direct investment and domestic entrepreneurship: blessing or curse? CEP Discussion Papers, CEPDP1268. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

Preview

PDF - Published Version Download (479Kb) | Preview

• Published Item
• LSE expert's profile

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.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2014 The Authors
Library of Congress subject classification:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Journal of Economic Literature Classification System:	F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L29 - Other M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M13 - Entrepreneurship
Sets:	Departments > Management Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Research centres and groups > Managerial Economics and Strategy Group
Identification Number:	CEPDP1268
Funders:	Economic and Social Research Council
Date Deposited:	26 Nov 2014 16:10
URL:	http://eprints.lse.ac.uk/60281/

Actions (login required)

Record administration - authorised staff only