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Local Communities in front of Big External Investors: An Opportunity or a Risk?

Author

Listed:
  • Angelo Antoci

    (University of Sassari)

  • Paolo Russu

    (University of Sassari)

  • Elisa Ticci

    (European University Institute)

Abstract

In the current age of trade and financial openness, local economies in developing countries are becoming increasingly exposed to external investments. The objective of the proposed two-sector model with environmental externalities is to provide an insight into the interaction between external investors and local communities with a focus upon the different strategies and income sources available to each category. In this context, analysis suggests that environmental regulations and incentives offered in order to attract external capital investment (whether foreign or national) may have an un-uniform impact on the two typologies of actors.

Suggested Citation

  • Angelo Antoci & Paolo Russu & Elisa Ticci, 2010. "Local Communities in front of Big External Investors: An Opportunity or a Risk?," Working Papers 2010.135, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2010.135
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    Keywords

    Foreign Direct Investments; Environmental Negative Externalities; Structural Changes; Poverty Alleviation;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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