A new and extensive panel of outward nonresource and resource FDI is used to investigate the effect of natural resources on the different components of FDI. Our main findings are as follows. First, for countries which were not a resource producer before, a resource discovery causes nonresource...

We provide cross-country evidence that rejects the traditional interpretation of the natural resource curse. First, growth depends negatively on volatility of unanticipated output growth independent of initial income, investment, human capital, trade openness, natural resource dependence, and...

Thomas Friedman has argued in The World Is Flat that those who deny rapid globalization will not survive in the global economy. First, we critically discuss Friedman's views and highlight the new globalization driven by outsourcing and vertical specialization. Second, we argue that Friedman pays...

A new and extensive panel of outward foreign direct investment (FDI) at the sector level is used to estimate the determinants of non-resource and resource FDI. Since FDI is I(1), we estimate panel error-correction models of FDI with spatial lags for FDI and market potential. Our main result is...

Brunnschweiler and Bulte (2008) [1] and [2] provide cross-country evidence that resource curse is a "red herring" once one corrects for endogeneity of resource exports and allows resource abundance to affect growth. Their results show that resource exports are no longer significant while value...

Cross-country evidence is presented on resource dependence and the link between volatility and growth. First, growth depends negatively on volatility of unanticipated output growth independent of initial income per capita, the average investment share, initial human capital, trade openness, the...