The Impact of Foreign Direct Investment On New Firm Survival in the UK: Evidence For Static v. Dynamic Industries
AbstractThe paper examines the impact of Foreign Direct Investment (FDI) on the survival of business start-ups. FDI has potential for both negative displacement/competition effects as well as positive knowledge spillover and linkage effects on new ventures. We find a net positive effect for the whole dataset. However, a major contribution of the paper is to outline and test an argument that this effect is likely to be comprised of a net negative effect in dynamic industries (high churn: firm entry plus exit relative to the stock of firms) alongside a net positive effect in static (low churn) industries. We find evidence to support this view. The results identify new effects of globalisation on enterprise development with associated challenges for industrial policy.
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Bibliographic InfoPaper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/09.
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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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new firms; foreign direct investment; dynamic industries;
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- André van Stel & Andrew Burke & José Maria Millán & Concepcion Roman, 2013. "Start-Up Size Strategy and Risk Management: Impact on New Venture Performance," Scales Research Reports H201207, EIM Business and Policy Research.
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