Journal Article
Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation
Authors
Publication Date
DOI
10.1007/s11187-017-9914-2
Key Words
Related Topics
Tax Policy
Innovation and Structural Change
Foreign Direct Investments
Companies
Using recent cross-national data, this paper examines the impact of foreign direct investment (FDI) on entrepreneurship activity. The impact of FDI on entrepreneurship is not clear a priori, with possibilities of both a negative effect (crowding out) and a positive effect (synergy or complementarity via spillovers). Results find support for the crowding out effect; however, this effect varies across nations with different prevalence of entrepreneurship. Another focus of this work is on gender differences. The crowding out effect is stronger for the full sample rather than the subsample of female entrepreneurship. This finding stands up to a battery of robustness checks. Policy implications are discussed.
