Examining the Impact of Inbound Green Foreign Direct Investment on Entrepreneurship in Iran Using Fuzzy Regression

Document Type : Research Paper

Authors

1 Ph.D. Candidate in Economics, Economics Department, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

2 Professor of Economics, Economics Department, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

3 Associate Professor of Economics, Economics Department, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

Abstract

The present study was conducted with the primary objective of examining the effect of green foreign direct investment (FDI) on entrepreneurial activities in Iran. To achieve this goal, data from the period 2008–2022 were utilized. Given the significant scarcity of accessible and published data on entrepreneurship, the fuzzy regression method was selected as an appropriate tool for data analysis and model estimation. The results of the study indicated that green FDI has had a negative impact on entrepreneurship in Iran. Additionally, the research data showed that certain factors, such as gross domestic product growth, entrepreneurial motivation and willingness, government support, macroeconomic policies, and risk acceptance, played positive roles in fostering entrepreneurship. In contrast, factors such as high tax rates, complexities in bureaucratic structures, and excessive openness of the domestic market were considered obstacles that negatively affected entrepreneurial growth. The negative impact of green FDI on entrepreneurship can be attributed to several key reasons, including the occupation of a significant portion of market capacity by foreign investors, increased competition intensity, and the creation of additional barriers to market entry for local entrepreneurs. These conditions have reduced motivation and limited growth opportunities for domestic entrepreneurs, ultimately acting as a deterrent to the promotion of entrepreneurial activities

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Main Subjects

References

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