Foreign direct investment and domestic entrepreneurship: insights from Asia
International Journal of Development Issues
ISSN: 1446-8956
Article publication date: 10 October 2022
Issue publication date: 7 March 2023
Abstract
Purpose
This paper aims to assess the relationships between foreign direct investment (FDI) and domestic entrepreneurship (DE) with the moderating role of formal institutions (FI) and informal institutions (II) and information communication technology (ICT) capacities in Asia.
Design/methodology/approach
This study is based on unbalanced panel data of 17 Asian countries from 2006 to 2018 at different stages of development, using the three-stage least squares estimation method.
Findings
The research findings indicate that FDI directly affects the establishment of domestic formal and informal entrepreneurship. In addition, FDI firms via the buffer mechanism of FI and II and ICT development for DE. Through its adjustment to the quality of institutions and ICT infrastructure, economic development determines the direction of FDI’s impact on DE.
Originality/value
The study findings grant empirical evidence and theoretical contributions to the relationship between FDI and domestic entrepreneurial development through the buffering mechanism of FI and II and the role of ICT.
Keywords
Acknowledgements
Disclosure of potential conflicts of interest.
The authors have no relevant financial or nonfinancial interests to disclose.
The authors have no competing interests to declare that are relevant to the content of this article.
All authors certify that they have no affiliations with or involvement in any organization or entity with any financial interest or nonfinancial interest in the subject matter or materials discussed in this manuscript.
The authors have no financial or proprietary interests in any material discussed in this article.
Citation
Luu, T.D. (2023), "Foreign direct investment and domestic entrepreneurship: insights from Asia", International Journal of Development Issues, Vol. 22 No. 1, pp. 38-56. https://doi.org/10.1108/IJDI-07-2022-0142
Publisher
:Emerald Publishing Limited
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