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Seizing the day: increasing entrepreneurial activity in the wake of resource windfalls through FDI, human capital, and democracy

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  • Pankaj C. Patel

Abstract

We analyse the influence of exogenous resource windfalls on country-level entrepreneurial activity, emphasizing the importance of subsequent enhancements in net FDI inflows and democratization. Non-OECD nations undergoing resource windfalls show a marginal decline in new business density. Yet, those non-OECD countries elevating net FDI inflows and democratization post-resource windfalls experience heightened new business density. Our results, validated through a variety of sensitivity analyses, emphasize the pivotal role of boosting net FDI inflows and democratization in the post-windfall phase for non-OECD countries aspiring to foster entrepreneurial activity.

Suggested Citation

  • Pankaj C. Patel, 2025. "Seizing the day: increasing entrepreneurial activity in the wake of resource windfalls through FDI, human capital, and democracy," Applied Economics, Taylor & Francis Journals, vol. 57(13), pages 1475-1492, March.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:13:p:1475-1492
    DOI: 10.1080/00036846.2024.2312961
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