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

Arshad Hayat ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: FDI; Economic Growth; Natural Resources; Threshold Model (search for similar items in EconPapers)
JEL-codes: O47 P28 P45 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-edu, nep-ene and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76205

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