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Foreign Direct Investment and Female Entrepreneurship


  • Fang,Sheng
  • Shamseldin,Heba M.M.
  • Xu,L. Colin


Using World Bank Enterprise Survey data around the world, this paper examines how foreign direct investment is associated with female entrepreneurship (that is, a firm being managed and at least partly owned by women), along with other factors such as business environment and female empowerment, and their interactions with foreign direct investment. Female entrepreneurship rises with foreign direct investment inflow, lower entry barriers for women, women's better access to finance, higher female labor force participation, and women's better education. The positive association of foreign direct investment inflow and female entrepreneurship is stronger for firms in the service sectors and small firms. The horizontal competition effects of intra-industry foreign direct investment for female entrepreneurship are reduced when women face lower entry barriers for starting a business and have a higher labor force participation rate, and the effects do not depend on women's access to finance or their level of education.

Suggested Citation

  • Fang,Sheng & Shamseldin,Heba M.M. & Xu,L. Colin, 2019. "Foreign Direct Investment and Female Entrepreneurship," Policy Research Working Paper Series 9083, The World Bank.
  • Handle: RePEc:wbk:wbrwps:9083

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    Cited by:

    1. Ofori, Isaac K. & Asongu, Simplice A., 2022. "Repackaging FDI for Inclusive Growth: Nullifying Effects and Policy Relevant Thresholds of Governance," MPRA Paper 111359, University Library of Munich, Germany.
    2. Ofori, Isaac K. & Asonngu, Simplice A., 2021. "Foreign Direct Investment, Governance and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 108178, University Library of Munich, Germany.
    3. Francois Cornelius Wehncke & Patricia Lindelwa Makoni & Godfrey Marozva, 2022. "Nexus Between FDI, ODA and Economic Growth in Developing African Countries: A Systems Approach," Economic Research Guardian, Weissberg Publishing, vol. 12(2), pages 97-114, December.
    4. Ioannis N. Kallianiotis & Iordanis Petsas, 2020. "The Effectiveness of the Single Mandate of the ECB and the Dual of the Fed," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(4), pages 1-11.
    5. Xiaodong Xu & Hafiz Syed Mohsin Abbas & Chunxia Sun & Samreen Gillani & Atta Ullah & Muhammad Ahsan Ali Raza, 2021. "Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1137-1154, June.
    6. Oana Cristina POPOVICI & Adrian Cantemir CĂLIN & Diana IVANA & Sorin DAN, 2021. "FDI Determinants Revisited: Extensive Evidence," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 103-123, December.
    7. AMOROSO Sara & AUDRETSCH David, 2020. "The role of gender in linking external sources of knowledge and R&D intensity," JRC Working Papers on Corporate R&D and Innovation 2020-05, Joint Research Centre (Seville site).
    8. Min-Lee Chan & Kannika Duangnate & Cho-Min Lin, 2020. "Performance and Cash Value of Taiwan Multinational Firms’ FDI in ASEAN," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-2.
    9. Ben Steichen & Ryan Lowe, 2021. "How do multilingual users search? An investigation of query and result list language choices," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 72(6), pages 759-776, June.
    10. Olufemi Adewale Aluko, 2020. "The foreign aid–foreign direct investment relationship in Africa: The mediating role of institutional quality and financial development," Economic Affairs, Wiley Blackwell, vol. 40(1), pages 77-84, February.
    11. Emma Serwaa Obobisa & Haibo Chen & Emmanuel Caesar Ayamba & Claudia Nyarko Mensah, 2021. "The Causal Relationship Between China-Africa Trade, China OFDI, and Economic Growth of African Countries," SAGE Open, , vol. 11(4), pages 21582440211, December.
    12. Ioannis N. Kallianiotis, 2022. "Trade Balance and Exchange Rate: The J-Curve," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(2), pages 1-3.

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