Do refugee inflows contribute to the host countries' entrepreneurial rates? A dynamic panel data analysis, 2000-2019

• Type: Article in International Scientific Journal
• Date: 2024

Authors

Noorbakhsh, S (Author) Other; Aurora Teixeira (Author) FEP

Journal

Title: JOURNAL OF ENTERPRISING COMMUNITIES-PEOPLE AND PLACES IN THE GLOBAL ECONOMY

Serial No. 8, Vol. 3

Initial page: 487

ISSN: 1750-6204

Indexing

ISI Web of Knowledge - 2 Citations

Scopus - 2 Citations

Other information

Authenticus ID: P-00Y-CR5

DOI: 10.1108/jec-09-2022-0137

Abstract (EN): PurposeThis study aims to estimate the impact of refugee inflows on host countries' entrepreneurial rates. The refugee crisis led to an increased scientific and public policy interest in the impact of refugee inflows on host countries. One important perspective of such an impact, which is still underexplored, is the impact of refugee inflows on host countries entrepreneurial rates. Given the high number of refugees that flow to some countries, it would be valuable to assess the extent to which such countries are likely to reap the benefits from increasing refugee inflows in terms of (native and non-native) entrepreneurial talent enhancement. Design/methodology/approachResorting to dynamic (two-step system generalized method of moments) panel data estimations, based on 186 countries over the period between 2000 and 2019, this study estimates the impact of refugee inflows on host countries' entrepreneurial rates, measured by the total early-stage entrepreneurial activity (TEA) rate and the self-employment rate. FindingsIn general, higher refugee inflows are associated with lower host countries' TEA rates. However, refugee inflows significantly foster self-employment rates of medium-high and high income host countries and host countries located in Africa. These results suggest that refugee inflows tend to enhance necessity related new ventures and/ or new ventures (from native and non-native population) operating in low value-added, low profit sectors. Originality/valueThis study constitutes a novel empirical contribution by providing a macroeconomic, quantitative assessment of the impact of refugee from distinct nationalities on a diverse set of host countries' entrepreneurship rates in the past two decades resorting to dynamic panel data models, which enable to address the heterogeneity of the countries and deal with the endogeneity of the variables of the model.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 46