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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.

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Bibliographic Info

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. 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.
  2. V. N. Balasubramanyam & M. Salisu & David Sapsford, 1999. "Foreign direct investment as an engine of growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(1), pages 27-40.
  3. Robert E. Lipsey, 2000. "Interpreting Developed Countries' Foreign Direct Investment," NBER Working Papers 7810, National Bureau of Economic Research, Inc.
  4. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
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