The role of foreign direct investment and natural resources in economic development by Jose De Gregorio: a review

Abstract

The paper analyzed the role of Foreign Direct Investment (FDI) and discussed the part played by natural resources in economic growth. Some of the issues regarding FDI in developing countries were considered, particularly, two issues highlighted in recent discussions and research. The first was whether and through which channels FDI affects economic growth. The second was the impact on economic growth of the exploitation of natural resources, normally developed by foreign investors. The policy implications regarding the treatment of FDI in developing countries were examined.