The Impact of the Syrian Refugee Crisis on Firm Entry and Performance in Turkey

The authors examine the impact of Syrian refugee inflows into Turkey on firm entry and performance. While total firm entry does not seem to be significantly affected, there is a substantial increase in the number of new foreign-owned firms in refugee-hosting regions. The authors find some evidence that the increase in new foreign-owned firms is driven by sectors most likely to benefit from low-skilled labor. There is also some indication of growth in gross profits and net sales in refugee-hosting provinces. The authors suggest that the influx of refugees creates opportunities for new firms due to: (1) increased demand for goods and services; and (2) increased supply of low-skilled labor and consequent decreased production costs.