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Foreign venture presence and domestic entrepreneurship: A macro level study

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

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.

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  • Fang, Hanqing & Chrisman, James J. & Memili, Esra & Wang, Minglin, 2020. "Foreign venture presence and domestic entrepreneurship: A macro level study," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 68(C).
  • Handle: RePEc:eee:intfin:v:68:y:2020:i:c:s1042443120301244
    DOI: 10.1016/j.intfin.2020.101240
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