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The More the Merrier? Immigrant Share and Entrepreneurial Activities

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  • Chengguang Li
  • Rodrigo Isidor
  • Luis Alfonso Dau
  • Rudy Kabst

Abstract

We examine the relationship between immigrant share and entrepreneurial activities in a country. Building on knowledge spillover theory of entrepreneurship (KSTE), we hypothesize that immigrant share positively relates to the creation, growth, and export activities of new firms through knowledge spillover between immigrant and native communities. We further suggest that favorable attitudes of natives toward immigrants positively moderate this relationship. Using data for 32 countries from the Global Entrepreneurship Monitor, we find support for the hypothesized direct relationships and for the moderating influence of a nation's attitude toward immigrants. Our study has implications for KSTE and research on entrepreneurship and immigration.

Suggested Citation

  • Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    • Handle: RePEc:sae:entthe:v:42:y:2018:i:5:p:698-733
    DOI: 10.1177/1042258718795344
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    8. Fornaro, Paolo & Maliranta, Mika & Rouvinen, Petri, 2019. "Immigrant Innovators and Firm Performance," ETLA Working Papers 63, The Research Institute of the Finnish Economy.
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    12. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    13. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute of Labor Economics (IZA).
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