Foreign entrants and domestic entrepreneurship: Evidence from Vietnam

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This paper examines the impacts of foreign entrants and international trade on potential entrants in Vietnam. Based on a discrete entry model, estimates show that foreign direct investment (FDI) stimulates more domestic entrants in the short run, while the aggregate effect of FDI varies across FDI types. Horizontal FDI tends to have no impact on local start-ups while vertical FDI is found to have a positive impact on the inflow of domestic entry for only the backward linkage and not for the forward linkage. Moreover, industries with more exports accommodate more domestic entrants, whereas imports tend to deter domestic start-ups.

Original languageEnglish
Pages (from-to)1725-1747
Number of pages23
JournalReview of Development Economics
Volume23
Issue number4
DOIs
StatePublished - 1 Nov 2019

Keywords

  • entry
  • export
  • FDI
  • start-up
  • Vietnam

Fingerprint

Dive into the research topics of 'Foreign entrants and domestic entrepreneurship: Evidence from Vietnam'. Together they form a unique fingerprint.

Cite this