TY  - RPRT
        AU  - Danakol, Seçil Hülya
AU  - Estrin, Saul
AU  - Reynolds, Paul
AU  - Weitzel, Utz
        TI  - Foreign Direct Investment and Domestic Entrepreneurship: Blessing or Curse?
        PY  - 2013/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7796
        UR  - https://www.iza.org/index.php/publications/dp7796
        AB  - 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.
        KW  - new firm entry
KW  - entrepreneurship
KW  - foreign direct investment
KW  - spillovers
        ER  -