Scholarlink

<p>Knowledge-based economy has been acknowledged as an important mechanism for sustainable development. Skilled labor and quality education are pronounced to play key roles in this economic transformation. The current attention is now on institutional structures, innovative entrepreneurship, and technological advancement. Scholars emphasize that foreign direct investment (FDI) is a critical ingredient for technological advancement in a knowledge-driven economy. Accordingly, this literature has grown to examine whether FDI benefits entrepreneurial performance in host nations. However, it is problematic to synthesize previous findings due to divergent outcomes. To provide a more coherent policy proposition, we examine the effect of FDI on entrepreneurship in Africa. This study employs unbalanced panel data of 32 African countries between 2006 and 2019 to provide additional insights into this phenomenon. Using the system generalized method of moments (System GMM), instrumental variable (IV-GMM), and Driscoll-Kraay robust standard estimation techniques, the study’s findings reveal an inverted U-shaped relationship between FDI and entrepreneurship. FDI improves entrepreneurship and reduces it after reaching a turning point. The novelties of this study are that it accounts for the role of economic freedom, technological innovation, and the global financial crisis. The analysis shows that economic freedom and technological innovation strengthen the positive impact of FDI on African entrepreneurship. These findings highlight the essential roles of market-based institutions and the technological capabilities in maximize the entrepreneurial benefits of FDI. It also emphasizes the need for African governments to accelerate efforts in advancing technological innovations to promote knowledge economy in Africa.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

On FDI-Entrepreneurship Nexus in Africa: Do Economic Freedom and Technological Innovations Make Any Difference?

  • 期刊论文

  • 发表日期：

    2025年7月24日

查看全文
  • Folorunsho M. Ajide,
  • Sodiq Abiodun Oladipupo,
  • Babatunde Wasiu Dauda,
  • Festus Gyamfi Baah

摘要

Knowledge-based economy has been acknowledged as an important mechanism for sustainable development. Skilled labor and quality education are pronounced to play key roles in this economic transformation. The current attention is now on institutional structures, innovative entrepreneurship, and technological advancement. Scholars emphasize that foreign direct investment (FDI) is a critical ingredient for technological advancement in a knowledge-driven economy. Accordingly, this literature has grown to examine whether FDI benefits entrepreneurial performance in host nations. However, it is problematic to synthesize previous findings due to divergent outcomes. To provide a more coherent policy proposition, we examine the effect of FDI on entrepreneurship in Africa. This study employs unbalanced panel data of 32 African countries between 2006 and 2019 to provide additional insights into this phenomenon. Using the system generalized method of moments (System GMM), instrumental variable (IV-GMM), and Driscoll-Kraay robust standard estimation techniques, the study’s findings reveal an inverted U-shaped relationship between FDI and entrepreneurship. FDI improves entrepreneurship and reduces it after reaching a turning point. The novelties of this study are that it accounts for the role of economic freedom, technological innovation, and the global financial crisis. The analysis shows that economic freedom and technological innovation strengthen the positive impact of FDI on African entrepreneurship. These findings highlight the essential roles of market-based institutions and the technological capabilities in maximize the entrepreneurial benefits of FDI. It also emphasizes the need for African governments to accelerate efforts in advancing technological innovations to promote knowledge economy in Africa.