Abstract:

This study explores the relationship between direct foreign investments, which is an important element of development, and the increasingly important concept of entrepreneurship in developing markets. In this context, the Global Entrepreneurship Index (GEM) data is used to create a panel data set covering the 2010-2019 years for 17 developing countries. The impact of direct foreign investments on entrepreneurship has been studied by using the panel data method. The results of the analysis show the conclusion that foreign direct investments have a statistically meaningful and positive impact on local entrepreneurial activities in the developing host markets. The study of countries found that foreign investments have a positive impact on entrepreneurial activities for developing market economies within the OECD countries. For the BRICS countries, direct foreign investments in the four established models are positive but statistically meaningless. When the countries involved in the study were geographically examined, it was found that direct foreign investments for developing markets located in Asia and Europe have a positive and meaningful impact on entrepreneurship. In South America, the positive relationship has not been statistically meaningful. This study was produced from the 1st author's master's thesis.

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