Knowledge Spillovers and Entrepreneurs’ Export Orientation

Abstract:     
We draw on knowledge spillover literature to suggest that a country’s level of foreign direct investment (FDI) and international trade may influence the export orientation of its entrepreneurs, which in turn may relate to the country’s total level of entrepreneurial activity. Macro-level data from 34 countries during 2002–2005 indicate that a country’s outward FDI, export, and import positively affect entrepreneurs’ export orientation, but these effects differ in how fast they manifest themselves. Furthermore, the extent to which a country’s entrepreneurs engage in export-oriented activities affects the subsequent emergence of new businesses. These findings have important implications for research and practice.

Number of Pages in PDF File: 31

Keywords: Knowledge spillovers, Export orientation, Country-level entrepreneurship

JEL Classification: M, M13, O32

working papers series