Proceedings of the 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021)

Foreign Direct Investment and Business Creation in China

Authors
Shiyong Zhao, Yi Huang
Corresponding Author
Yi Huang
Available Online 8 April 2021.
DOI
https://doi.org/10.2991/assehr.k.210407.105How to use a DOI?
Keywords
Foreign Direct Investment, Business Creation, China
Abstract
This paper studies the impact of foreign direct investment on local business creation by using a panel data set containing 31 provinces of China over 1992-2017. The study finds that the effect is positive and significant. The results are robust to alternative sets of control variables and different estimation strategies and different sample periods. On average about 16 percent of China’s local business creation growth can be attributed to FDI inflow over the entire sample period. The knowledge diffusion and technology transfer effect more than offset the crowding-out effect of FDI on local business creation in general during China’s economic transition.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Shiyong Zhao
AU  - Yi Huang
PY  - 2021
DA  - 2021/04/08
TI  - Foreign Direct Investment and Business Creation in China
BT  - Proceedings of the 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021)
PB  - Atlantis Press
SP  - 535
EP  - 541
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210407.105
DO  - https://doi.org/10.2991/assehr.k.210407.105
ID  - Zhao2021
ER  -