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

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  • Jose De Gregorio

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.

Suggested Citation

  • Jose De Gregorio, 2003. "The Role of Foreign Direct Investment and Natural Resources in Economic Development," Working Papers Central Bank of Chile 196, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:196
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_196.pdf
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    Cited by:

    1. Oji-Okoro Izuchukwu & Daniel Ofori, 2014. "Why South-South FDI is Booming: Case Study of China FDI in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 361-376, March.
    2. Kolawole Olayiwola & Henry Okodua, 2013. "Foreign Direct Investment, Non-Oil Exports, and Economic Growth in Nigeria: A Causality Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(11), pages 1479-1496, November.
    3. Oana-Ramona SOCOLIUC & Andreea-Oana IACOBUTA & Delia-Elena DIACONASU, 2014. "On The Relationship Between Foreign Direct Investments And Economic Growth. Romania In Times Of Crisis," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6(3), pages 86-102, September.
    4. Najaf Ali & Ye Mingque, 2018. "An Application of Vector Error Correction Model Approach in Explaining the Impact of Foreign Direct Investment on Economic Growth of Asian Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 133-139.
    5. Lidiia Karpenko & Oleksandr Ignatenko & Olena Taranenko & Iryna Oliinyk & Ripsime Khrenova-Shymkina, 2021. "Layer and structural components of modern investment security of the country," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 367-383, March.
    6. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
    7. Chakraborty, Debashis & Mukherjee, Jaydeep & Lee, Jaewook, 2016. "Do FDI Inflows influence Merchandise Exports? Causality Analysis on India over 1991-2016," MPRA Paper 74851, University Library of Munich, Germany.
    8. Shujing Yue & Yang Yang & Yaoyu Hu, 2016. "Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience," Sustainability, MDPI, vol. 8(2), pages 1-14, February.
    9. Nyamwange, Mathew, 2009. "Foreign direct investment in Kenya," MPRA Paper 34155, University Library of Munich, Germany.
    10. A. Yasemin Yalta, 2011. "New Evidence on FDI-Led Growth: The Case of China," Working Papers 1107, TOBB University of Economics and Technology, Department of Economics.
    11. Prüfer, P. & Tondl, G., 2008. "The FDI-Growth Nexus in Latin America : The Role of Source Countries and Local Conditions," Discussion Paper 2008-61, Tilburg University, Center for Economic Research.
    12. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    13. Fernando Aportela & Francisco Gallego & Pablo García, 2003. "Reserves Over the Transitions to Floating and to Inflation Targeting: Lessons From the Developed World," Working Papers Central Bank of Chile 211, Central Bank of Chile.
    14. Yalta, A. Yasemin, 2013. "Revisiting the FDI-led growth Hypothesis: The case of China," Economic Modelling, Elsevier, vol. 31(C), pages 335-343.
    15. A. Yasemin Yalta, 2012. "Uncovering the channels through which FDI affects current account: the case of Turkey," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 5(2), pages 158-167.
    16. Okpara, Godwin Chigozie, 2012. "On whether foreign direct investment catalyzes economic development in Nigeria," MPRA Paper 36319, University Library of Munich, Germany, revised 27 Jan 2012.
    17. Rudra P. Pradhan, Mak B. Arvin, & Mahendhiran Nair, Jay Mittal, & Neville R. Norman, 2017. "Telecommunications infrastructure and usage and the FDI–growth nexus: evidence from Asian-21 countries "Abstract: This paper examines causal relationships between telecommunications infrastructur," Department of Economics - Working Papers Series 2032, The University of Melbourne.
    18. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    19. NseAbasi Imoh Etukafia & Ntiedo Bassey Ekpo & Ikenna Elias Asogwa, 2017. "Modeling Long-Run and Short-Run Dynamics of Foreign Direct Investment on the Manufacturing Sector Growth in Nigeria: The ARDL Bound Testing Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(11), pages 128-136, November.
    20. Emilio Pineda & Mr. Paul Cashin & Ms. Yan M Sun, 2009. "Assessing Exchange Rate Competitiveness in the Eastern Caribbean Currency Union," IMF Working Papers 2009/078, International Monetary Fund.
    21. Rudi Bratamanggala, 2017. "Implications of Tax Receivables and Retribution for the Economic Growth of Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 570-579.
    22. Omar G. Aziz, 2022. "FDI inflows and economic growth in Arab region: The institutional quality channel," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1009-1024, January.

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