The Relationship between Natural Resources Abundance, Foreign Direct Investment and Environmental Performance in Selected Oil and Developed Countries during 1996-2013

 

Volume 4, Issue 3, Number 7, Pages 101-116, Published Online July 20, 2016

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Author(s):

Dr. Abolfazl Shahabadi1 and Sahar Feyziand

ABSTRACT:

This paper investigates the impact of natural resource abundance of good governance channel on attracting foreign direct investment in selected oil and developed countries during 1996-2013. Foreign direct investment is resource for economic growth, technology transfer, job creation and economic development activities. Most developing countries, particularly leading countries, attempt to provide an appropriate and attractive framework for foreign investors to take advantages of this process. Country’s economic performance over time is determined to a great extent by its political, institutional and legal environment. The institutions and policies, determines the quality of governance in the countries. Potentially, indicators of governance and natural resource abundance can be effective in attracting foreign direct investment. Foreign direct investment can contribute the environmental problems and to fix it and it depends on indicators of institutional quality. This study is a comparative analysis between selected oil and developed countries. The results reveal that good governance indicators and natural resources are the key determinants of FDI inflows. As well as Foreign direct investment leading to improve the environment performance in developed countries. Because in these countries, unlike selected oil countries, there are laws preventing.

KEYWORDS:

Foreign Direct Investment, Natural Resources Abundance, Governance, Environmental Performance.

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