IDEAS home Printed from https://ideas.repec.org/a/ids/gbusec/v18y2016i2p124-135.html
   My bibliography  Save this article

Which sectoral FDI flows crowd in domestic entrepreneurship?

Author

Listed:
  • Nadia Doytch

Abstract

This study examines the impact of several sector- and industry-level FDI inflows - mining, manufacturing, total services, and financial services - on domestic entrepreneurship, which is measured as the density of newly registered firms. We use a unique dataset of sectoral FDI coupled with data from the World Bank Doing Business Indicators for a panel of up to 96 countries and the period 2004-2012. Our model controls for fixed capital formation, quality of institutions, as well as several cost of doing business indicators: the cost of starting a business, tax rates, and export costs. We use a dynamic panel estimator that allows us to exploit the time-varying characteristics of the data and to control for omitted variable biases and endogeneity issues in the data. We find that although services and mining FDI are related to crowding-in of domestic entrepreneurship, manufacturing FDI is associated with a crowding-out effect.

Suggested Citation

  • Nadia Doytch, 2016. "Which sectoral FDI flows crowd in domestic entrepreneurship?," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 18(2), pages 124-135.
    • Handle: RePEc:ids:gbusec:v:18:y:2016:i:2:p:124-135
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=75530
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elheddad, Mohamed, 2019. "Foreign direct investment and domestic investment: Do oil sectors matter? Evidence from oil-exporting Gulf Cooperation Council economies," Journal of Economics and Business, Elsevier, vol. 103(C), pages 1-12.
    2. Wei Feng, 2021. "How can entrepreneurship be fostered? Evidence from provincial‐level panel data in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1509-1534, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:18:y:2016:i:2:p:124-135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.