EconPapers    
Economics at your fingertips  
 

Does foreign direct investment stimulate new firm creation? In search of spillovers through industrial and geographical linkages

Laixiang Sun (), In Hyeock Lee () and Eunsuk Hong ()
Additional contact information
Laixiang Sun: University of Maryland
In Hyeock Lee: Loyola University Chicago
Eunsuk Hong: SOAS University of London

Small Business Economics, 2017, vol. 48, issue 3, 613-631

Abstract: Abstract This paper examines the spillover effects of inward foreign direct investment (FDI) on the entrepreneurial activities of new firm creation through both industrial and geographical linkages. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in 2000–2004, this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted ‘U’-shaped curvilinear trend.

Keywords: Inward foreign direct investment; New firm creation; Entrepreneurship; Sectoral and spatial analysis; F23; L26; M13; R12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11187-016-9803-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9803-0

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-15
Handle: RePEc:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9803-0