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Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation

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  • Rajeev K. Goel

    () (Kiel Institute for the World Economy
    Illinois State University)

Abstract

Using recent cross-national data, this paper examines the impact of foreign direct investment (FDI) on entrepreneurship activity. The impact of FDI on entrepreneurship is not clear a priori, with possibilities of both a negative effect (crowding out) and a positive effect (synergy or complementarity via spillovers). Results find support for the crowding out effect; however, this effect varies across nations with different prevalence of entrepreneurship. Another focus of this work is on gender differences. The crowding out effect is stronger for the full sample rather than the subsample of female entrepreneurship. This finding stands up to a battery of robustness checks. Policy implications are discussed.

Suggested Citation

  • Rajeev K. Goel, 2018. "Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation," Small Business Economics, Springer, vol. 50(4), pages 887-897, April.
  • Handle: RePEc:kap:sbusec:v:50:y:2018:i:4:d:10.1007_s11187-017-9914-2
    DOI: 10.1007/s11187-017-9914-2
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    References listed on IDEAS

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    Cited by:

    1. Rajeev K. Goel & James W. Saunoris, 2020. "Does income inequality sand or grease the wheels of entrepreneurial activity? International evidence," Australian Economic Papers, Wiley Blackwell, vol. 59(2), pages 138-160, June.
    2. Sanghyun Hong & W. Robert Reed & Bifei Tian & Tingting Wu & Gen Chen, 2019. "Does FDI Promote Entrepreneurial Activities? A Meta-Analysis," Working Papers in Economics 19/06, University of Canterbury, Department of Economics and Finance.
    3. Marzieh Abolhassani & Seçil Hülya Danakol, 2019. "Wage and competition channels of foreign direct investment and new firm entry," Small Business Economics, Springer, vol. 53(4), pages 935-960, December.

    More about this item

    Keywords

    Entrepreneurship; Gender; Foreign direct investment; Taxation; Economic freedom;

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • F6 - International Economics - - Economic Impacts of Globalization

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