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

Shiyong Zhao

Asia-Pacific Journal of Accounting & Economics, 2023, vol. 30, issue 5, 1137-1149

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.

Date: 2023
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DOI: 10.1080/16081625.2022.2092158

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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