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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?


  • Bannerman, Efua


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

Suggested Citation

  • Bannerman, Efua, 2007. "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?," MPRA Paper 18254, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18254

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    References listed on IDEAS

    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. 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.
    3. 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.
    4. 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.
    5. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    6. repec:wsi:wschap:9789812798091_0017 is not listed on IDEAS
    7. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters,in: Globalization And International Trade Policies, chapter 17, pages 623-687 World Scientific Publishing Co. Pte. Ltd..
    8. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    9. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    10. 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 335-376, October.
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    More about this item


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

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements


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