Foreign Venture Presence and Domestic Entrepreneurship: A Macro Level Study
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.
Recommended Citation
Fang, C., Chrisman, J. J., Memili, E., & Wang, M. (2020). Foreign Venture Presence and Domestic Entrepreneurship: A Macro Level Study. Journal of International Financial Markets, Institutions and Money, 68 Elsevier.
The definitive version is available at https://doi.org/10.1016/j.intfin.2020.101240
Department(s)
Business and Information Technology
Keywords and Phrases
Entrepreneurship; FDI; Foreign Venture; Knowledge Spillover; Macro; Unemployment
International Standard Serial Number (ISSN)
1042-4431
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2020 Elsevier, All rights reserved.
Publication Date
01 Sep 2020
