Small Business Economics

, Volume 50, Issue 4, pp 887–897 | Cite as

Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation

  • Rajeev K. GoelEmail author


Using recent cross-national data, this paper examines the impact of foreign direct investment (FDI) on entrepreneurship activity. The impact of FDI on entrepreneurship is not clear a priori, with possibilities of both a negative effect (crowding out) and a positive effect (synergy or complementarity via spillovers). Results find support for the crowding out effect; however, this effect varies across nations with different prevalence of entrepreneurship. Another focus of this work is on gender differences. The crowding out effect is stronger for the full sample rather than the subsample of female entrepreneurship. This finding stands up to a battery of robustness checks. Policy implications are discussed.


Entrepreneurship Gender Foreign direct investment Taxation Economic freedom 

JEL classification

M16 F6 


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Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.Kiel Institute for the World EconomyKielGermany
  2. 2.Department of EconomicsIllinois State UniversityNormalUSA

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