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Oil dependence and entrepreneurship: Non-linear evidence

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  • Awoa, Paul Awoa
  • Efogo, Françoise Okah
  • Ondoa, Henri Atangana

Abstract

This study examines the empirical nature of the oil dependence-entrepreneurship nexus, building on recent research that extends the “resource curse” beyond its effects on economic growth. For the period from 2006 to 2018, the sample includes 115 countries at various stages of economic development. Using panel threshold methods, we discover an inverted U-shaped relationship, indicating that even small increases in oil rents increase entrepreneurship below the threshold. Globally, oil rents above a threshold of 77 % stifle entrepreneurship. Regional differences and institutional vulnerability act as moderators.

Suggested Citation

  • Awoa, Paul Awoa & Efogo, Françoise Okah & Ondoa, Henri Atangana, 2023. "Oil dependence and entrepreneurship: Non-linear evidence," Economic Systems, Elsevier, vol. 47(1).
    • Handle: RePEc:eee:ecosys:v:47:y:2023:i:1:s0939362522001212
    DOI: 10.1016/j.ecosys.2022.101059
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    More about this item

    Keywords

    Oil rents; Entrepreneurship; Institutions; Panel threshold regression;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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