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

Ozkan Eren, Masayuki Onda, Bulent Unel

Research output: Contribution to journalArticle

2 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 languageEnglish
Pages (from-to)98-109
Number of pages12
JournalLabour Economics
Volume58
DOIs
Publication statusPublished - 2019 Jun
Externally publishedYes

Keywords

  • Entrepreneurship
  • FDI
  • Right-to-Work laws
  • Self-employment

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

Fingerprint Dive into the research topics of 'Effects of FDI on entrepreneurship: Evidence from Right-to-Work and non-Right-to-Work states'. Together they form a unique fingerprint.

  • Cite this