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Effects of FDI on Entrepreneurial Activity: Evidence from Right-to-Work and Non-Right-to-Work States

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Abstract

This paper investigates the impact of Foreign Direct Investment (FDI) on entrepreneurial activity at the individual-owner level in U.S. states over 1996- 2008. Our results indicate that FDI has no effect on entrepreneurial activity in Right-to-Work (RTW) states. In non-RTW states, however, we find that an increase in FDI decreases the average monthly rate of business creation and destruction. Specifically, a 10-percent increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5 percent (relative to sample mean), respectively.

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  • Ozkan Eren & Masayuki Onda & Bulent Unel, 2016. "Effects of FDI on Entrepreneurial Activity: Evidence from Right-to-Work and Non-Right-to-Work States," Departmental Working Papers 2016-04, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2016-04
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    Cited by:

    1. Bulent Unel, 2018. "Effects of Immigration on Native Entrepreneurship in the U.S," Departmental Working Papers 2018-01, Department of Economics, Louisiana State University.
    2. Serpil Dom Tomak, 2018. "An Analysis of the Macroeconomic Determinants of Entrepreneurial Activity in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 128-136.

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