Title: Does foreign direct investment crowd out domestic entrepreneurship?
Authors: De Backer, Koenraad ×
Sleuwaegen, Leo #
Issue Date: Feb-2003
Publisher: Kluwer academic publ
Series Title: Review of industrial organization vol:22 issue:1 pages:67-84
Abstract: In analyzing firm entry and exit across Belgian manufacturing industries, this paper presents evidence that import competition and foreign direct investment discourage entry and stimulate exit of domestic entrepreneurs. These results are in line with theoretical occupational choice models that predict foreign direct investment would crowd out domestic entrepreneurs through their selections in product and labor markets. However, the empirical results also suggest that this crowding out effect may be moderated or even reversed in the long-run due to the long term positive effects of FDI on domestic entrepreneurship as a result of learning, demonstration, networking and
ISSN: 0889-938X
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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