Role of FDI & Entrepreneurship in Fostering Economic Growth -A Review of Literature

Faiza Ali Dhar ., Dr. Sumaira ., Tasleem Ara Wani .


The later part of twentieth century saw developed nations emerge into knowledge economies, hinging on technological change which serves as the main driver for growth of economies in the long run. Entrepreneurs have attained attention as the tool for imbibing these fast evolving technological changes in the form of new start-ups and deliberate on these changes in their existing business also.  Economies now count knowledge as a part of the capital stock and technology is no longer an unintentional offshoot of a firm’s investment action. FDI plays an eminent role in fostering growth through innovation, by serving as the source for knowledge and technological spillovers depending upon the absorptive capacity of the nation. In this paper a modest attempt has been made to explore the present literature regarding the link between FDI and entrepreneurship. This will help to present insights into how spillovers generated by FDI can aid entrepreneurs in promoting and sustaining long term economic growth. It also elaborates upon various channels through which transmission of knowledge and technological know-how takes place in an economy.


FDI, Entrepreneur, Technology, Economic Growth, Innovation, FDI, Absorptive Capacity, Spillovers, Entrepreneurship

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