nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2005‒12‒09
one paper chosen by

  1. Could The Irish Miracle Be Repeated in Hungary? By Zoltan Acs; Colm O'Gorman; Laszlo Szerb; Siri Terjesen

  1. By: Zoltan Acs; Colm O'Gorman; Laszlo Szerb; Siri Terjesen
    Abstract: In today's global knowledge economy, foreign direct investment (FDI) plays a major role in the economic development of emerging economies. Knowledge spillovers from multinational enterprises create entrepreneurial opportunities. These knowledge spillovers could have a positive effect on entrepreneurial activity and move a country from a knowledge-using to a knowledge-creating economy. Using case studies and data from Global Entrepreneurship Monitor (GEM), we explore how inward FDI impacts indigenous entrepreneurial activity in two countries, Ireland and Hungary. We find significant differences in entrepreneurial activity between Ireland and Hungary and suggest that enterprise development policies should focus on enhancing knowledge spillovers from FDI, increasing human capital and promote occupational choice, and enable the commercialization of new technology.
    Keywords: Entrepreneurial Activity, Economic Development, Entrepreneurs, Foreign Direct Investment, Knowledge Spillovers, Ireland, Hungary
    JEL: M13 F23 O10 O30
    Date: 2005–11

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