Effects of FDI on entrepreneurship: Evidence from Right-to-Work and non-Right-to-Work states

Ozkan Eren; Masayuki Onda; Bulent Unel

doi:10.1016/j.labeco.2019.04.008

Effects of FDI on entrepreneurship: Evidence from Right-to-Work and non-Right-to-Work states

Ozkan Eren, Masayuki Onda, Bulent Unel^*

^*Corresponding author for this work

Institute for Research in Contemporary Political and Economic Affairs

Research output: Contribution to journal › Article › peer-review

17 Citations (Scopus)

Abstract

This paper investigates the impact of Foreign Direct Investment (FDI) on entrepre-neurial activity at the individual-owner level in U.S. states between 1996 and 2008. Our results indicate that FDI has no effect on entrepreneurship in pro-business states identified by the existence of Right-to-Work (RTW) laws. 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% increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5% (relative to the sample mean), respectively.

Original language	English
Pages (from-to)	98-109
Number of pages	12
Journal	Labour Economics
Volume	58
DOIs	https://doi.org/10.1016/j.labeco.2019.04.008
Publication status	Published - 2019 Jun

Keywords

Entrepreneurship
FDI
Right-to-Work laws
Self-employment

ASJC Scopus subject areas

Economics and Econometrics
Organizational Behavior and Human Resource Management

Access to Document

10.1016/j.labeco.2019.04.008

Cite this

@article{a9bb5431a7f14728824fce23799015b2,

title = "Effects of FDI on entrepreneurship: Evidence from Right-to-Work and non-Right-to-Work states",

abstract = "This paper investigates the impact of Foreign Direct Investment (FDI) on entrepre-neurial activity at the individual-owner level in U.S. states between 1996 and 2008. Our results indicate that FDI has no effect on entrepreneurship in pro-business states identified by the existence of Right-to-Work (RTW) laws. 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% increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5% (relative to the sample mean), respectively.",

keywords = "Entrepreneurship, FDI, Right-to-Work laws, Self-employment",

author = "Ozkan Eren and Masayuki Onda and Bulent Unel",

note = "Funding Information: We thank Elias Dinopoulos, Barry Hirsch, Maurizio Iacopetta, Florencio Lopez-de-Silanes, Pietro Peretto, and the seminar participants at the University of Florida and SKEMA School of Business for their helpful comments. We also thank the editor Wilbert van der Klaauw and two anonymous referees for their constructive comments and suggestions. Publisher Copyright: {\textcopyright} 2019 Elsevier B.V.",

year = "2019",

month = jun,

doi = "10.1016/j.labeco.2019.04.008",

language = "English",

volume = "58",

pages = "98--109",

journal = "Labour Economics",

issn = "0927-5371",

publisher = "Elsevier",

}

TY - JOUR

T1 - Effects of FDI on entrepreneurship

T2 - Evidence from Right-to-Work and non-Right-to-Work states

AU - Eren, Ozkan

AU - Onda, Masayuki

AU - Unel, Bulent

N1 - Funding Information: We thank Elias Dinopoulos, Barry Hirsch, Maurizio Iacopetta, Florencio Lopez-de-Silanes, Pietro Peretto, and the seminar participants at the University of Florida and SKEMA School of Business for their helpful comments. We also thank the editor Wilbert van der Klaauw and two anonymous referees for their constructive comments and suggestions. Publisher Copyright: © 2019 Elsevier B.V.

PY - 2019/6

Y1 - 2019/6

N2 - This paper investigates the impact of Foreign Direct Investment (FDI) on entrepre-neurial activity at the individual-owner level in U.S. states between 1996 and 2008. Our results indicate that FDI has no effect on entrepreneurship in pro-business states identified by the existence of Right-to-Work (RTW) laws. 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% increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5% (relative to the sample mean), respectively.

AB - This paper investigates the impact of Foreign Direct Investment (FDI) on entrepre-neurial activity at the individual-owner level in U.S. states between 1996 and 2008. Our results indicate that FDI has no effect on entrepreneurship in pro-business states identified by the existence of Right-to-Work (RTW) laws. 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% increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5% (relative to the sample mean), respectively.

KW - Entrepreneurship

KW - FDI

KW - Right-to-Work laws

KW - Self-employment

UR - http://www.scopus.com/inward/record.url?scp=85064846586&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85064846586&partnerID=8YFLogxK

U2 - 10.1016/j.labeco.2019.04.008

DO - 10.1016/j.labeco.2019.04.008

M3 - Article

AN - SCOPUS:85064846586

SN - 0927-5371

VL - 58

SP - 98

EP - 109

JO - Labour Economics

JF - Labour Economics

ER -

Effects of FDI on entrepreneurship: Evidence from Right-to-Work and non-Right-to-Work states

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this