Does Foreign Direct Investment Stimulate New Firm Creation? In Search of Spillovers through Industrial and Geographical Linkages

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Main author: Sun, Laixiang
Other authors: Lee, In Hyeock
Hong, Eunsuk
Format: Journal Article           
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id eprints-22968
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description This paper examines the spillover effects of inward foreign direct investment (FDI) on the entrepreneurial activities of new firm creation through both industrial and geographical linkages. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in 2000–2004, this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted ‘U’-shaped curvilinear trend.
format Journal Article
author Sun, Laixiang
author_facet Sun, Laixiang
Lee, In Hyeock
Hong, Eunsuk
authorStr Sun, Laixiang
author_letter Sun, Laixiang
author2 Lee, In Hyeock
Hong, Eunsuk
author2Str Lee, In Hyeock
Hong, Eunsuk
title Does Foreign Direct Investment Stimulate New Firm Creation? In Search of Spillovers through Industrial and Geographical Linkages
publisher Springer Nature
publishDate 2017
url https://eprints.soas.ac.uk/22968/

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