Do Natural Resources Curse Fdi In Gcc Countries?

Résumé: Abstarct Natural resources are blessing for some countries to attract FDI but cursed for others. Existence literature argue that resource-rich countries attract less FDI because of resource (oil) price volatility. This study examines that natural resources discourage FDI in GCC countries (FDI-Natural resources curse hypothesis). Using panel data analysis for six oil dependent countries during 1980-2013 and applying several econometrics techniques. The main findings of this paper is that natural resources measured by oil rents have negative association with FDI inflows; this negative impact is robust even when other FDI determinates of FDI included. FDI inflows decrease between 0.15 and 0.92% when oil rents increased by 1%. In addition, the empirical results show that trade openness and labour force are the main factors that encourage FDI while political instability and corruption deter FDI inflows into GCC countries.

Publié dans la revue: مجلة التنمية والاستشراف للبحوث والدراسات