Abstract
In the paper, I explored links between inflow of FDI, natural resource abundance and economic growth. The paper is an attempt to analyze a lager sample of 106 countries and investigate the impact of FDI inflow on the economic growth of the host country.
Further, natural resource abundance is considered to slow down the economic growth. The paper explores if the natural resource abundance affect the FDI-growth relationship.
Using panel data for a sample the period 1993-2012, the paper uses fixed effects model and conclude that FDI inflow accelerates economic growth of the host country. However, the presence of natural resources slows down the FDI induced growth.
The same results hold after controlling for endogeneity.