Impact of Foreign Direct Investment (FDI) on Entrepreneurship Development in Jiangsu Province - China

Authors

  • Michael Verner Menyah  School of Management, Jiangsu University, Zhenjiang, Jiangsu, China.
  • Jincai Zhuang  Institute of Rural studies, Jiangsu University, Zhenjiang, Jiangsu, China
  • Evelyn Sappor  Department of Engineering, Heriot-Watt University, Edinburgh, UK
  • Rejoice Akrashei  Business School, University of Professional Studies, Accra, Ghana.

DOI:

https://doi.org/10.32628/IJSRSET218524

Keywords:

Foreign Direct Investment, SED, Jiangsu Province, Entrepreneurship Development

Abstract

Foreign Direct Investment (FDI) has served as a huge promoter of growth for many economies over the years, playing the role of supplementary income source for economies. The trend being identified now, however is that FDIs do come with adverse effect for host economies with one of the sector feeling the impact of the adverse impact being the local entrepreneurship. This study therefore measured the severity of the adverse effect of FDIs on the economy of China whiles also evaluating the contribution of FDIs to the overall economy using Sequential Explanatory Design (SED). Using Statistical Package for Social Scientist (SPSS), the researchers conducted statistical analysis like t-test, Correlation, Multiple Regression Analysis, R-Square, F-statistics and Variance Inflator Factors (VIF). The findings of the study revealed that FDIs indeed have both positive and negative implications for the Chinese economy. The positive effects come in the form of inspiring innovation and infrastructural development, influx of investment capital and the liberalization of the economy form monopolies and unfair trading The negative effect came in the form of stifling domestic entrepreneurship development as the foreign firms compete with local entrepreneurs for market, expertise, labor, capital and space for operation

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2021-10-30

Issue

Volume 8, Issue 5, September-October-2021

Section

Research Articles

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How to Cite

[1]
Michael Verner Menyah, Jincai Zhuang, Evelyn Sappor, Rejoice Akrashei "Impact of Foreign Direct Investment (FDI) on Entrepreneurship Development in Jiangsu Province - China" International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 8, Issue 5, pp.202-212, September-October-2021. Available at doi : https://doi.org/10.32628/IJSRSET218524