@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",
}