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Entrepreneurial Activity As An Externality Of Inward Foreign Direct Investment In Emerging Economies: Panel Data From Argentina, Brazil, Colombia And South Africa

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  • MICHELLE L. WASHINGTON

    (School of Global Business, Arcadia University, 450 S. Easton Road, Glenside, PA 19038, USA)

  • ZANETA CHAPMAN

    (School of Global Business, Arcadia University, 450 S. Easton Road, Glenside, PA 19038, USA)

Abstract

Many emerging economies seek multiple and diversified means of economic development, including openness to inward foreign direct investment. However, some scholars and protectionists claim this hosting of economic activity on the part of multinational corporations (MNCs) might in fact be detrimental to economic development. This paper seeks to address these concerns by using panel data from Argentina, Brazil, Colombia and South Africa to investigate a mediational relationship among inward foreign direct investment, skilled labor supply and entrepreneurial activity in the emerging economy context. Our results provide empirical evidence of later stage entrepreneurial activity as a spillover effect of inward foreign direct investment and that this indirect effect is fully mediated by the pool of factory workers.

Suggested Citation

  • Michelle L. Washington & Zaneta Chapman, 2014. "Entrepreneurial Activity As An Externality Of Inward Foreign Direct Investment In Emerging Economies: Panel Data From Argentina, Brazil, Colombia And South Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-17.
    • Handle: RePEc:wsi:jdexxx:v:19:y:2014:i:01:n:s1084946714500046
    DOI: 10.1142/S1084946714500046
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    References listed on IDEAS

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    1. Yuriy Gorodnichenko & Jan Svejnar & Katherine Terrell, 2010. "Globalization and Innovation in Emerging Markets," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 194-226, April.
    2. Magnus Blomström & Ari Kokko, 2002. "FDI and Human Capital: A Research Agenda," OECD Development Centre Working Papers 195, OECD Publishing.
    3. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
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    Cited by:

    1. Yassaman Saadatmand & Dennis Barber, 2019. "Globalization, Gender And Entrepreneurial Activities In Latin America," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-22, December.
    2. Ali Hamid Irhoumah Nisser & Abdullah Mohammad Ahmed Ayedh, 2017. "Micro nance and Women's Empowerment in Egypt," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 2(1), pages 52-58.

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