FDI and Economic Growth: The Role of Natural Resources

Arshad Hayat ()

No 2014/36, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: In the paper, I explored links between inflow of FDI, natural resource abundance and economic growth. The paper is an attempt to analyze a lager sample of 106 countries and investigate the impact of FDI inflow on the economic growth of the host country. Further, natural resource abundance is considered to slow down the economic growth. The paper explores if the natural resource abundance affect the FDI-growth relationship. Using panel data for a sample the period 1993-2012, the paper uses fixed effects model and conclude that FDI inflow accelerates economic growth of the host country. However, the presence of natural resources slows down the FDI induced growth. The same results hold after controlling for endogeneity.

Keywords: Foreign Direct Investment; Economic Growth; Natural Resources; Resource Curse; Hausman Test (search for similar items in EconPapers)
JEL-codes: F23 F43 O4 Q0 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2014-12, Revised 2014-12
New Economics Papers: this item is included in nep-ene, nep-fdg, nep-gro and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: FDI and economic growth: the role of natural resources? (2018)
Working Paper: FDI and Economic Growth: The Role of Natural Resources (2014)
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