Entrepreneurship and natural resource rents: Evidence from excessive entrepreneurial activity

Nguyen, Canh Phuc; Nguyen, Bach; Thanh, Su Dinh; Kim, Sangho

doi:10.1016/j.spc.2020.07.010

Cited by 21 publications

(16 citation statements)

References 63 publications

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“…Specifically, entrepreneurs employ their capabilities and personal network capital to execute entrepreneurial activities and extract rents (Berglann et al, 2011;Canh et al, 2021;Canh et al, 2020); however, it is noteworthy that business opportunities and failure risks are also a function of economic and institutional conditions that include economic complexity (see Marino et al (2012); Ramos-Rodríguez et al (2012); Ogbari et al (2018)). Thus, changes in the level of economic complexity could bring about not just opportunities but also uncertainties for economic agents, especially for entrepreneurs who are at the frontier of the "creative destruction" (Geroski, 1990;Scott et al, 2017).…”

Section: Economic Complexity and Entrepreneurship Densitymentioning

confidence: 99%

Economic complexity and entrepreneurship density: A non-linear effect study

Nguyen

Bui

et al. 2021

Technological Forecasting and Social Change

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Section: Economic Complexity and Entrepreneurship Densitymentioning

confidence: 99%

Economic complexity and entrepreneurship density: A non-linear effect study

Nguyen

Bui

et al. 2021

Technological Forecasting and Social Change

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“…The literature on shadow economy has mainly focused on its determinants such as income per capita and institutional factors (Tanzi, 1982(Tanzi, , 1999Friedman et al, 2000;Schneider and Enste, 2000;Choi and Thum, 2005;Canh et al, 2020a;Ajide and Ojeyinka, 2023). Though role of globalization in an economy has been well discussed in the literature, the relationship between REPS 9,2 globalization and the shadow economy is relatively scanty.…”

Section: Previous Empirical Studies and Study's Hypothesesmentioning

confidence: 99%

“…The literature on shadow economy has mainly focused on its determinants such as income per capita and institutional factors (Tanzi, 1982, 1999; Friedman et al. , 2000; Schneider and Enste, 2000; Choi and Thum, 2005; Canh et al. , 2020a; Ajide and Ojeyinka, 2023).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Globalization and shadow economy: a panel analysis for Africa

Ajide,

Dada

2023

REPS

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PurposeThe study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.Design/methodology/approachTo do this, the authors employ the KOF globalization index and implement both static and dynamic common correlated mean group estimators on a panel of 24 African nations from 1995–2017. This technique accommodates the issue of cross-sectional dependence, sample bias and endogenous regressors. Panel threshold analysis is also conducted to establish the nonlinearity between globalization and the shadow economy. To examine the causality between the variables, the study employs Dumitrescu and Hurlin's panel causality test.FindingsThe results show that globalization reduces the size of the shadow economy. The results of the nonlinear analysis suggest a U-shaped relationship. Overall globalization has a threshold impact of 48.837%, economic globalization has 45.615% and political globalization has 66.661% while social globalization has a threshold value of 35.744%. The results of the panel causality show that there is a bidirectional causality between the two variables.Practical implicationsThe results suggest that the government and other relevant authorities need to introduce capital controls and other policy measures to moderate the degree of social, political and cultural diffusion. Appropriate policies should be formulated to monitor the extent of African economic openness to other continents to maximize the gains from globalization.Originality/valueApart from being the first study in the African region that evaluates the relevance of globalization in controlling the shadow economy, it also analyzes the dynamics and threshold analysis between the two variables using advanced panel econometrics which makes the study unique. The study suggests that globalization tools are useful for affecting the size of the shadow economy in Africa. This study provides fresh empirical evidence on the impact of globalization on the shadow economy in the case of Africa.

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“…The relationship between entrepreneurial activity and natural resource rents is ambiguous (Canh et al, 2020(Canh et al, , 2021Chambers & Munemo, 2019). The nexus is a significant topic with increasing emphasis on sustainability and climate change.…”

Section: Introductionmentioning

confidence: 99%

“…Previous studies assume that the relationship is linear, despite its possible nonlinearity. For instance, Canh et al (2020) conclude that increases in entrepreneurship density would increase natural resource rents in a sample of 60 countries from 2006 to 2016. This study can shed some light on the mechanism through which entrepreneurship affects natural resource rents by examining the nonlinear relationship.…”

Section: Introductionmentioning

confidence: 99%

The Nonlinear Relationship Between Entrepreneurship and Natural Resource Rents

Nguyen

Kim

2022

The Journal of Entrepreneurship

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To examine a nonlinear relationship between entrepreneurship density and natural resource rents, this study applies the panel-corrected standard errors (PCSE) estimator to a sample of 87 countries over the period of 2006–2016. Estimation results show strong evidence of the nonlinear relationship between the two variables. The influence of entrepreneurship density on natural resource rents is subject to two different regimes. In low- and upper-middle-income countries, an increase in entrepreneurship density increases natural resource rents to a certain level, but it reduces the rents afterwards. In high-income countries, the relationship is reversed. Policymakers should adapt their entrepreneurship policy to prevailing economic circumstances to enhance economic sustainability.

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Entrepreneurship and natural resource rents: Evidence from excessive entrepreneurial activity

Cited by 21 publications

References 63 publications

Economic complexity and entrepreneurship density: A non-linear effect study

Economic complexity and entrepreneurship density: A non-linear effect study

Globalization and shadow economy: a panel analysis for Africa

The Nonlinear Relationship Between Entrepreneurship and Natural Resource Rents

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