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The impact of foreign direct investment on local entrepreneurship: blessing or curse?

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  • Shiyong Zhao

Abstract

This paper studies the impact of foreign direct investment on local entrepreneurship by using a panel data set containing 31 provinces of China over 1992–2017. The study finds that the effect is positive and significant. On average about 16 percent of China’s local entrepreneurship growth can be attributed to FDI inflow over the entire sample period. The knowledge diffusion and technology transfer effect more than offset the crowding-out effect of FDI on local entrepreneurship in general during China’s economic transition.

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  • Shiyong Zhao, 2023. "The impact of foreign direct investment on local entrepreneurship: blessing or curse?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(5), pages 1137-1149, September.
    • Handle: RePEc:taf:raaexx:v:30:y:2023:i:5:p:1137-1149
    DOI: 10.1080/16081625.2022.2092158
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    Cited by:

    1. Shiyong Zhao, 2024. "Foreign business presence and local entrepreneurship development: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.

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