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Immigration and Entrepreneurial Activities

  • Apr 10, 2019
Immigration and Entrepreneurial Activities

Using data for 32 countries around the world, Ivey faculty member Chengguang Li and his colleagues investigate the relationship between the share of immigrants in a country and entrepreneurial activities in that country. They find that immigrant share positively relates to the creation, growth, and export activities of new firms, through knowledge spillover between immigrant and native communities. This relationship is even stronger when there are favorable attitudes toward immigrants in the country. These authors argue that this is because immigrants and natives obtain new knowledge through interaction, which helps drive entrepreneurial activities in a country. This, in turn, affects the country's total level of new firm creation and its growth–oriented and export–oriented entrepreneurial activities.

Li, C., Isidor, R., Dau, L. A., & Kabst, R. (2018). The More the Merrier? Immigrant Share and Entrepreneurial Activities. Entrepreneurship Theory and Practice.