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FDI and economic growth: Evidence on the Role of the Size of Natural Resource Sector

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  • hayat, arshad

Abstract

This paper uses a threshold regression model and split the sample into groups of low-natural resource and high-natural resource groups. This paper used data from 70 countries for the period 1996-2015 and found evidence that FDI has a positive impact on economic growth of the host country if the host country’s natural resource sector is below the threshold. However, FDI inflow doesn’t have any significant impact on growth in countries with natural resource sector larger than the threshold.

Suggested Citation

  • hayat, arshad, 2017. "FDI and economic growth: Evidence on the Role of the Size of Natural Resource Sector," MPRA Paper 76205, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76205
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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