Resource discoveries and FDI bonanzas
This paper examines the examines the effect of giant oil and gas discoveries on foreign direct investment in developing economies using a new project-level dataset. We document a large increase in non-extraction FDI in the 2 years following a giant discovery, an event which is unpredictable due to t...
| Main Authors: | , |
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| Format: | Working paper |
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University of Oxford
2016
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| _version_ | 1826264228428775424 |
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| author | Toews, G Vezina, P |
| author_facet | Toews, G Vezina, P |
| author_sort | Toews, G |
| collection | OXFORD |
| description | This paper examines the examines the effect of giant oil and gas discoveries on foreign direct investment in developing economies using a new project-level dataset. We document a large increase in non-extraction FDI in the 2 years following a giant discovery, an event which is unpredictable due to the uncertain nature of exploration. We find that FDI inflows increase by 73% and that this wave is driven by a 37% increase in the number of FDI projects as well as a 22% increases in source countries and a 17% increase in target sectors. We interpret this FDI response as evidence for the news-driven business-cycle hypothesis within a developing country setting and highlight FDI bonanzas as an important development channel for resource rich economies. |
| first_indexed | 2024-03-06T20:04:24Z |
| format | Working paper |
| id | oxford-uuid:287263dc-b1b8-44e1-ac75-1a048c08c480 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T20:04:24Z |
| publishDate | 2016 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:287263dc-b1b8-44e1-ac75-1a048c08c4802022-03-26T12:12:52ZResource discoveries and FDI bonanzasWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:287263dc-b1b8-44e1-ac75-1a048c08c480Symplectic ElementsBulk import via SwordUniversity of Oxford2016Toews, GVezina, PThis paper examines the examines the effect of giant oil and gas discoveries on foreign direct investment in developing economies using a new project-level dataset. We document a large increase in non-extraction FDI in the 2 years following a giant discovery, an event which is unpredictable due to the uncertain nature of exploration. We find that FDI inflows increase by 73% and that this wave is driven by a 37% increase in the number of FDI projects as well as a 22% increases in source countries and a 17% increase in target sectors. We interpret this FDI response as evidence for the news-driven business-cycle hypothesis within a developing country setting and highlight FDI bonanzas as an important development channel for resource rich economies. |
| spellingShingle | Toews, G Vezina, P Resource discoveries and FDI bonanzas |
| title | Resource discoveries and FDI bonanzas |
| title_full | Resource discoveries and FDI bonanzas |
| title_fullStr | Resource discoveries and FDI bonanzas |
| title_full_unstemmed | Resource discoveries and FDI bonanzas |
| title_short | Resource discoveries and FDI bonanzas |
| title_sort | resource discoveries and fdi bonanzas |
| work_keys_str_mv | AT toewsg resourcediscoveriesandfdibonanzas AT vezinap resourcediscoveriesandfdibonanzas |