%0 Journal Article
%@ 0921-898X
%A Sun, L.
%A Lee, I.H.
%A Hong, E.
%D 2016
%F iiasa:13840
%I Springer
%J Small Business Economics
%K Inward foreign direct investment; new firm creation; entrepreneurship; sectoral and spatial analysis
%P 1-19
%R 10.1007/s11187-016-9803-0
%T Does foreign direct investment stimulate new firm creation? In search of spillovers through industrial and geographical linkages
%U https://pure.iiasa.ac.at/id/eprint/13840/
%X This paper examines the spillover effects of inward foreign direct investment (FDI) on the entrepreneurial activities of new firm creation through both industrial and geographical linkages. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in 2000–2004, this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted ‘U’-shaped curvilinear trend.