FDI and Economic Growth: The Role of Natural Resources

Hayat, Arshad (2014): FDI and Economic Growth: The Role of Natural Resources.

Abstract

In the paper, I explored links between inflow of FDI, natural resource abundance and economic growth. Natural resource abundance is considered to slow down the economic growth. The paper explores if the natural resource abundance reduce the FDI induced growth in the host country. Using panel data for a sample of 106 countries for the period 1993-2012, the paper conclude FDI inflow accelerates economic growth of the host country. However, the presence of natural resources slows down the FDI induced growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Foreign Direct Investment, Economic Growth, Natural Resources, Resource Curse, Hausman Test
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General

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