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The authors draw on knowledge spillover literature to suggest that a country's proportion of exportoriented new ventures, compared to its total number of new ventures, represents an outcome of knowledge spillovers (export spillovers) that stem from Foreign Direct Investment (FDI) and international trade, as well as a source of knowledge spillovers (entrepreneurship spillovers) that positively influence the country's total level of entrepreneurial activity. They distinguish between higher-income and lower-income countries, because the latter are less integrated into the world economy.
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