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Research Library

Center for Energy Studies

Does Foreign Aid Help or Hurt Foreign Direct Investment?

Michelle Michot Foss

Does Foreign Aid Help or Hurt Foreign Direct Investment?.

Michelle Michot Foss, fellow in energy and minerals, suggests that host governments are often not well positioned to implement market-based reforms and “liberalization.” This is problematic because foreign aid is subject to home country fiscal and political cycles.

This working paper is part of a series titled “The Role of Foreign Direct Investment in Resource-Rich Regions.”