The impact of Greenfield investment on domestic entrepreneurship

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. Usin...

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Main Authors: Tung Son Ha, Vu Tuan Chu, Mai Tuyet Thi Nguyen, Dung Hoai Thi Nguyen, Anh Ngoc Thi Nguyen
Format: Article
Language:English
Published: SpringerOpen 2021-07-01
Series:Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://doi.org/10.1186/s13731-021-00164-6
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author Tung Son Ha
Vu Tuan Chu
Mai Tuyet Thi Nguyen
Dung Hoai Thi Nguyen
Anh Ngoc Thi Nguyen
author_facet Tung Son Ha
Vu Tuan Chu
Mai Tuyet Thi Nguyen
Dung Hoai Thi Nguyen
Anh Ngoc Thi Nguyen
author_sort Tung Son Ha
collection DOAJ
description 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.
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spelling doaj.art-92e01d58c9c745d8aa48fc39bb2279272022-12-21T22:51:28ZengSpringerOpenJournal of Innovation and Entrepreneurship2192-53722021-07-0110111610.1186/s13731-021-00164-6The impact of Greenfield investment on domestic entrepreneurshipTung Son Ha0Vu Tuan Chu1Mai Tuyet Thi Nguyen2Dung Hoai Thi Nguyen3Anh Ngoc Thi Nguyen4Faculty of Business Management, National Economics UniversityFaculty of Business Management, National Economics UniversityFaculty of Business Management, National Economics UniversityFaculty of Business Management, National Economics UniversityFaculty of Business Management, National Economics UniversityAbstract 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.https://doi.org/10.1186/s13731-021-00164-6Greenfield investmentEntrepreneurial activitiesOpportunity-based entrepreneurshipForeign direct investment
spellingShingle Tung Son Ha
Vu Tuan Chu
Mai Tuyet Thi Nguyen
Dung Hoai Thi Nguyen
Anh Ngoc Thi Nguyen
The impact of Greenfield investment on domestic entrepreneurship
Journal of Innovation and Entrepreneurship
Greenfield investment
Entrepreneurial activities
Opportunity-based entrepreneurship
Foreign direct investment
title The impact of Greenfield investment on domestic entrepreneurship
title_full The impact of Greenfield investment on domestic entrepreneurship
title_fullStr The impact of Greenfield investment on domestic entrepreneurship
title_full_unstemmed The impact of Greenfield investment on domestic entrepreneurship
title_short The impact of Greenfield investment on domestic entrepreneurship
title_sort impact of greenfield investment on domestic entrepreneurship
topic Greenfield investment
Entrepreneurial activities
Opportunity-based entrepreneurship
Foreign direct investment
url https://doi.org/10.1186/s13731-021-00164-6
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