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The impact of Greenfield investment on domestic entrepreneurship

Author

Listed:
  • Tung Son Ha

    (National Economics University)

  • Vu Tuan Chu

    (National Economics University
    University of Ottawa)

  • Mai Tuyet Thi Nguyen

    (National Economics University)

  • Dung Hoai Thi Nguyen

    (National Economics University)

  • Anh Ngoc Thi Nguyen

    (National Economics University)

Abstract

The FDI-entrepreneurship nexus has received growing attention over the last decade. However, the empirical findings on their relationship have been inconsistent at best. This study seeks to examine how the inflows of Greenfield investment influence entrepreneurship of the host country. Using panel data from 110 countries during the period 2001-2018, we find that growing level of Greenfield investment brings detrimental impact on the level of total and opportunity-driven entrepreneurial activities in the host countries while the impact on necessity-driven entrepreneurship have been mixed. The results regarding the impact of Greenfield investment on total entrepreneurial activities and opportunity-based entrepreneurial activities are robust across different econometric settings, different time span, and different categories of control variables.

Suggested Citation

  • Tung Son Ha & Vu Tuan Chu & Mai Tuyet Thi Nguyen & Dung Hoai Thi Nguyen & Anh Ngoc Thi Nguyen, 2021. "The impact of Greenfield investment on domestic entrepreneurship," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00164-6
    DOI: 10.1186/s13731-021-00164-6
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    2. Yeboah, Samuel, 2023. "Empowering Communities: A Systematic Review of FDI Initiatives for Skill Development and Local Capacity Building," MPRA Paper 118408, University Library of Munich, Germany, revised 22 Aug 2023.
    3. Yeboah Asuamah, Samuel, 2023. "Empowering Communities: A Systematic Review of FDI Initiatives for Skill Development and Local Capacity Building," MPRA Paper 118410, University Library of Munich, Germany, revised 20 Aug 2023.
    4. Gyan, Sylvester & James Nyarkoh, Bright & Yeboah, Samuel, 2023. "The Dual Nature of FDI: Boosting Local Startups and SMEs While Posing Challenges," MPRA Paper 118384, University Library of Munich, Germany, revised 05 Aug 2023.
    5. 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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