AMBER – ABBS Management Business and Entrepreneurship Review

Open Access Open Access  Restricted Access Subscription Access

A Study on the Growth of Entrepreneurship in India, with respect to the Growth in Foreign Investment, Economic Growth and Financial Development


Affiliations
1 Acharya Bangalore B School, India
 

Entrepreneurship is the key to India's development. It is important as it utilizes local resources, generating employment and promotes rural development. This paper examines the impact of financial development, economic development and foreign investment on entrepreneurial development measured by production asper Ministry of Micro, Small and Medium Enterprises (MSME) and fixed investment as per MSME for the period of 1997-1998 to 2016-2017. Using Error correction model, the result shows that investment as per MSME is positively influenced by financial development in long run. In short run foreign investment and economic development positively influence fixed investments in MSMEs. Production per MSME was found to be positively influenced by economic development and financial development in long run while in short run none of the selected independent variables influence production of MSMEs.

Keywords

Entrepreneurship, Foreign Investment, Economic Growth, Financial Development.
User
Notifications
Font Size

  • Agosin, M. R., & Machado, R. (2005). Foreign investment in developing countries: does it crowd in domestic investment?. Oxford Development Studies,33(2), pp 149-162.

  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the role of local financial markets. Journal of international economics, 64(1), pp 89-112.

  • Carland, J., & Carland, J. (2004). Economic development: Changing the policy to support entrepreneurship. Academy of Entrepreneurship Journal, 10(2), pp 104-114.

  • Davidsson,P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of business venturing, 18(3), 301-331.

  • Gujarati, Damodar. 2003. Basic Econometrics. New York: McGraw Hill

  • King, R. G., & Levine, R. (1993). Finance, entrepreneurship and growth. Journal of monetary Economics, 32(3), pp 513-542.

  • Leff, N. H. (1978). Industrial organization and entrepreneurship in the developing countries: The economic groups. Economic development and cultural change, pp 661-675.

  • Liu, X., Burridge, P., & Sinclair, P. J. (2002). Relationships between economic growth, foreign direct investment and trade: evidence from China. Applied Economics, 34(11), pp 14331440.

  • Ministry of Finance. (2018). The inter-ministerial committee for boosting exports from the MSME sector. Retrieved from http://dgft.gov.in/exim/ 2000/imc-EXPORT-sme.pdf on 10 July 2014.

  • Naude, W. (2008). Entrepreneurship in economic development (No. 2008/20). Research Paper, UNU-WIDER, United Nations University (UNU).

  • Smallbone, D., & Welter, F. (2001). The role of government in SME development in transition economies. International Small Business Journal,19(4), pp 63-77.

  • Wennekers, S., Van Wennekers, A., Thurik, R., & Reynolds, P. (2005). Nascent entrepreneurship and the level of economic development. Small business economics, 24(3), pp 293-309.


Abstract Views: 654

PDF Views: 365




  • A Study on the Growth of Entrepreneurship in India, with respect to the Growth in Foreign Investment, Economic Growth and Financial Development

Abstract Views: 654  |  PDF Views: 365

Authors

Syed Kazim
Acharya Bangalore B School, India

Abstract


Entrepreneurship is the key to India's development. It is important as it utilizes local resources, generating employment and promotes rural development. This paper examines the impact of financial development, economic development and foreign investment on entrepreneurial development measured by production asper Ministry of Micro, Small and Medium Enterprises (MSME) and fixed investment as per MSME for the period of 1997-1998 to 2016-2017. Using Error correction model, the result shows that investment as per MSME is positively influenced by financial development in long run. In short run foreign investment and economic development positively influence fixed investments in MSMEs. Production per MSME was found to be positively influenced by economic development and financial development in long run while in short run none of the selected independent variables influence production of MSMEs.

Keywords


Entrepreneurship, Foreign Investment, Economic Growth, Financial Development.

References





DOI: https://doi.org/10.23874/amber%2F2018%2Fv9%2Fi1%2F176053