Foreign venture presence and domestic entrepreneurship: A macro level study

Hanqing Fang, James J. Chrisman, Esra Memili and Minglin Wang

Journal of International Financial Markets, Institutions and Money, 2020, vol. 68, issue C

Abstract: Building upon the literature of necessity- and opportunity-driven entrepreneurship, this study explores how the presence of foreign ventures affect domestic entrepreneurship. We hypothesize that foreign ventures reduce necessity-driven entrepreneurship by diminishing unemployment in domestic economies, and stimulate opportunity-driven entrepreneurship by increasing knowledge stocks in domestic economies. Empirical results based on country-level longitudinal data of 30 countries from 1980 through 2008 support our hypotheses. We conclude that over time, domestic economies with more foreign ventures might have more opportunity- driven entrepreneurial activities and less necessity-driven entrepreneurial activities. Thus, foreign ventures can change the structure of domestic entrepreneurship in host countries.

Keywords: Foreign venture; FDI; Unemployment; Knowledge Spillover; Entrepreneurship; Macro (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:68:y:2020:i:c:s1042443120301244

DOI: 10.1016/j.intfin.2020.101240

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