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Foreign Direct Investment and the Natural Resource Curse; what is the relationship to Economic Development, Income Inequality and Poverty? Do institutions and Good Governance matter?

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  • Bannerman, Efua
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    Abstract

    The aim of this study is to econometrically investigate whether the Dutch Disease and Rent Seeking effects related to the Natural Resource Curse, undermine Foreign Direct Investment’s effect on Economic Development, Income Inequality and Poverty. This involves a cross-country analysis of 69 developing countries over two decades, 1970-1990

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    File URL: http://mpra.ub.uni-muenchen.de/18254/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18254.

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    Date of creation: 13 Dec 2007
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    Handle: RePEc:pra:mprapa:18254

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    Keywords: Foreign Direct Investment; Natural Resource Curse; Economic Growth; Income Inequality; Poverty; Dutch Disease; Rent Seeking;

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    1. Robert E. Lipsey, 2001. "Foreign Direct Investment and the Operations of Multinational Firms: Concepts, History, and Data," NBER Working Papers 8665, National Bureau of Economic Research, Inc.
    2. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," Working Papers 483, Research Seminar in International Economics, University of Michigan.
    3. Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
    4. Lichtenberg, Frank R. & Pottelsberghe de la Potterie, Bruno v., 1998. "International R&D spillovers: A comment," European Economic Review, Elsevier, vol. 42(8), pages 1483-1491, September.
    5. Emma Aisbett, 2007. "Why are the Critics So Convinced that Globalization is Bad for the Poor?," NBER Chapters, in: Globalization and Poverty, pages 33-86 National Bureau of Economic Research, Inc.
    6. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    7. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," NBER Working Papers 12885, National Bureau of Economic Research, Inc.
    8. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 335-76, October.
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