Aleksandra Pavlović – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia
Mladen Radišić – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia
Andrea Ivanišević – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia
5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, CONFERENCE PROCEEDINGS
Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;
ISBN 978-86-80194-20-2, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.2019
Besides the well-known factors that affect entrepreneurship: economic and technological
development, culture and education, FDI should also be considered as an important factor for entrepreneurial
development of a host country. Having that in mind, the aim of this paper is to analyze how
FDI may affect the host country’s entrepreneurial activity, through a literature review. In some of the
analyzed papers foreign investors are seen as friends of the host country’s entrepreneurship thanks to
the capital inflows, know-how, managerial capacity and employment growth, but in some other papers
are seen as enemies, owing to increasing import competition and discouraging domestic entrepreneurs.
The main contribution of this paper is compressing into a single material an overview of the friendly
and unfriendly based effects of FDI on the host country’s entrepreneurship.
Foreign direct investments, entrepreneurship, employment.
 Danakol, S. H., Estrin, S., Reynolds, P., & Weitzel, U. (2017). Foreign direct investment
via M&A and domestic entrepreneurship: blessing or curse? Small Business Economics,
Volume 48, Issue 3, pp 599–612.
 Strat, V. A. (2015). The relationship between the education system and the inflows of FDI
for the Central and East European EU new member states. Romanian Journal of Economics,
Institute of National Economy, Vol. 41, 76-92.
 Beugelsdijk, S., Smeets, R., & Zwinkels, R. (2008). The impact of horizontal and vertical
FDI on host’s country economic growth. International Business Review, Vol. 17, 452-472.
 Fahed, W. (2013). The Effect of Entrepreneurship on Foreign Direct Investment. International
Journal of Economics and Management Engineering, Vol:7, No:6.
 Zhang, K. H., & Markusen, J. R. (1999). Vertical multinationals and host-country characteristics.
Journal of Development Economics, Vol. 59, 233-252.
 Dorożyńska, A., & Dorożyński, T. (2014). The role of human capital in attracting FDI the
case of the Lodz region. Studia Prawno-Ekonomiczne, XCII (92), 221-241.
 Akin, M. S., & Vlad, V. (2011). The Relationship between Education and Foreign Direct
Investment: Testing the Inverse U Shape. European Journal of Economic and Political
Studies, ejeps-4 (1).
 Berrill, J., O’Hagan-Luff, M., & van Stel, A. (2018). The moderating role of education in the
relationship between FDI and entrepreneurial activity. Small Business Economics, pp 1–19.
 González-Pernía, J.L., & Peña-Legazkue, I. (2015). Export-oriented entrepreneurship and
regional economic growth. Small Business Economics, Volume 45, Issue 3, pp 505–522.
 Fortanier, F. (2007). Foreign Direct Investment and Host Country Economic Growth: Does
the Investor’s Country of Origin Play a Role? Transnational Corporations, Vol. 16, No. 2.
 Goel, R. (2018). Foreign direct investment and entrepreneurship: gender differences across
international economic freedom and taxation. Small Business Economics, Volume 50,
Issue 4, pp 887–897.
 Munemo, J. (2015). Foreign Direct Investment, Business Start-up Regulations, and Entrepreneurship
in Africa. Economics Bulletin, 35(1).
 Sun, L., Lee, I. H. I., Hong, E. (2016). Does foreign direct investment stimulate new firm
creation? In search of spillovers through industrial and geographical linkages. Small
Business Economics, 48(3).
 Apostolov, M. (2017). The impact of FDI on the performance and entrepreneurship of
domestic firms. Journal of International Entrepreneurship, 15(4):390–415.
 Albulescu, C. T., & Tămăşilă, M. (2014). The Impact of FDI on Entrepreneurship in the European
Countries. Procedia – Social and Behavioral Sciences, Volume 124, Pages 219-228.