FDI and economic growth: Evidence on the Role of the Size of Natural Resource Sector

hayat, arshad (2017): FDI and economic growth: Evidence on the Role of the Size of Natural Resource Sector.

Abstract

This paper uses a threshold regression model and split the sample into groups of low-natural resource and high-natural resource groups. This paper used data from 70 countries for the period 1996-2015 and found evidence that FDI has a positive impact on economic growth of the host country if the host country’s natural resource sector is below the threshold. However, FDI inflow doesn’t have any significant impact on growth in countries with natural resource sector larger than the threshold.

• Item Type: MPRA Paper
• Language: English
• Keywords: FDI, Economic Growth, Natural Resources, Threshold Model
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment; P - Economic Systems > P4 - Other Economic Systems > P45 - International Trade, Finance, Investment, and Aid

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