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The Role of Foreign Direct Investment and Natural Resources in Economic Development

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Jose De Gregorio

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Abstract

This paper analyzes the role of FDI on economic growth, and discusses whether, based on these results, there is some rationale for special policies that discriminate in favor of particular sectors to attract FDI and to promote growth. At a sectoral level, this paper also discusses the role of natural resources on economic growth. The view that having natural resources is bad for growth and welfare is questioned.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 196.

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Date of creation: Jan 2003
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Handle: RePEc:chb:bcchwp:196

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  1. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
  2. Claudio Bravo-Ortega & Jose De Gregorio, . "The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth," Working Papers Central Bank of Chile 139, Central Bank of Chile. [Downloadable!]
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  3. Maloney, William F., 2002. "Missed opportunities - innovation and resource-based growth in Latin America," Policy Research Working Paper Series 2935, The World Bank. [Downloadable!]
  4. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Eduardo Borensztein & Jong-Wha Lee & Jose De Gregorio, 1994. "How Does Foreign Direct Investment Affect Economic Growth," IMF Working Papers 94/110, International Monetary Fund.
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  6. Lane, Philip R & Tornell, Aaron, 1996. " Power, Growth, and the Voracity Effect," Journal of Economic Growth, Springer, vol. 1(2), pages 213-41, June.
  7. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-22, January.
  8. Robert E. Lipsey, 2000. "Interpreting Developed Countries' Foreign Direct Investment," NBER Working Papers 7810, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. De Gregorio, Jose, 1992. "Economic growth in Latin America," Journal of Development Economics, Elsevier, vol. 39(1), pages 59-84, July. [Downloadable!] (restricted)
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  10. Daniel Lederman & William Maloney, 2002. "Open Questions about the Link Between Natural Resources and Economic Growth: Sachs and Warner Revisited," Working Papers Central Bank of Chile 141, Central Bank of Chile. [Downloadable!]
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