The Impact Of Foreign Direct Investment On Women’s Entrepreneurship

FDI and entrepreneurship are important driving forces for China’s economic development.The opening-up policy,introducing foreign investment and promoting mass innovation and entrepreneurship are also strategies that China will not change easily.In China,where entrepreneurship has broad prospects,female entrepreneurship is not only an important channel for women to balance their work and family and pursue personal value,but also can promote economic development and employment level.At present,a large number of studies have proved the internal relationship between FDI and entrepreneurship,but few literatures have examined the influence of FDI on female entrepreneurship.FDI has an impact on female entrepreneurship through spillover effect and crowding out effect,but the overall impact is still a question worth discussing.Reference of existing research,this paper selected China Family Panel Studies database(CFPS)micro individual data,whether as a professional for "private individuals/self-employed" to judge whether the entrepreneurial activity,using the probit model of regression testing the effects of FDI inflows for female entrepreneurship.The research of this paper finds that the overall entrepreneurial tendency of FDI for women is dominated by crowding out effect,and the entrepreneurial tendency of women decreases with the inflow of FDI.Further research shows that women in the west,who are married,older and less educated,are more likely to be disturbed by the crowding out effect,while the urban and eastern regions are more significantly affected due to the concentration of FDI inflows.From the perspective of influence channels,the inflow of FDI affects women’s entrepreneurial behavior by affecting women’s wage level,and the increase of wage level will make women choose ordinary employment.The above results show that FDI inflows will have important influence on female entrepreneurship,although the overall inhibit female entrepreneurship,but with heterogeneity analysis and test results,women at a lower level of entrepreneurship chose to obtain employment can improve women’s economic status and the business structure,how to further guide the foreign enterprises to absorb employment and play a spillover role is important in promoting social harmony and progress and improving the quality of entrepreneurial economy.