Please use this identifier to cite or link to this item:
Title: Natural resource and entrepreneurship: Economic freedom matters
Authors: Awoa Awoa, Paul
Oyono, Jean Cedric
Ngah Atangana, Bénédicte
Okere Atanga, Donald
Zeh, Inès Perolde
Keywords: Economic Freedom
Natural Resource
Threshold Effect
Issue Date: 2022
Journal: Resources Policy 
Abstract: This paper sheds new light on the relationship between resource rents and entrepreneurship, conditional on economic freedom. In a sample of 101 countries, we demonstrate that resource rents encourage people to engage in counterproductive activities by lowering new business density when economic freedom is low. The findings hold up well to a variety of measures as well as forms of resource rents and economic freedom indicators. Additionally, in an effort to establish a threshold for economic freedom, a robustness test using the dynamic panel threshold approach shows that resource rents have asymmetric impacts on entrepreneurship both below and above a value of 7. Therefore, when economic freedom is low, resource rents enhance the incentive to choose rent-seeking activities (bribery, theft, and lobbying) over productive ones, leading to a diversion from the best use of resources and a lack of entrepreneurial spirit.
ISSN: 0301-4207
DOI: 10.1016/j.resourpol.2022.103114
Source: Resources Policy [ISSN 0301-4207], (Enero 2022)
Appears in Collections:Artículos
Show full item record

Google ScholarTM




Export metadata

Items in accedaCRIS are protected by copyright, with all rights reserved, unless otherwise indicated.