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2017•RePEc: Research Papers in EconomicsRequires access

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

Arshad Hayat

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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.

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What this paper is about

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.

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Available 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.

Key concepts: Natural resource, Resource (disambiguation), Foreign direct investment, Sample (material), Natural (archaeology), Economics, Natural resource economics, Business

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