Does FDI promote entrepreneurial activities? A meta-analysis

Researchers have long identified both FDI and entrepreneurship as potentially important determinants of economic development. Accordingly, a literature has grown to investigate whether stimulates entrepreneurial activity in host countries. It is difficult synthesize these empirical findings because many the studies use different definitions entrepreneurship, study time periods countries, apply estimation procedures generate their results. In order better understand this literature, we collect 675 estimates from 47 that estimate relationship between using country-level data. We meta-analysis address two questions: (1) What overall, mean effect on entrepreneurship?, (2) factors account for differences estimated effects across studies? An innovation our it develops nested testing framework select among number competing meta-analytic models. also extends new Andrews-Kasy estimators allow explanatory variables. find close zero statistically insignificant. While may each play an role development, results indicate does not generally stimulate entrepreneurship. This suggests public policy efforts encourage through are unlikely be successful. All files necessary reproduce paper available online at Harvard Dataverse.