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Research Library

Center for Energy Studies



Role of Foreign Direct Investment in Resource-Rich Regions

Role of Foreign Direct Investment in Resource-Rich Regions.
An Inquiry Into the Resource Curse and Sustainable Development

Indigenous natural resource wealth can provide a basis for robust economic development and broad macroeconomic development, especially when there is appropriate governance and robust legal and regulatory institutions. But a lack of institutional fortitude in many regions around the world has contributed to failure to translate resource wealth into broader macroeconomic wealth. This observation has resulted in the implication that natural resource wealth dooms a region to poverty and corruption – the “resource curse.” However, the resource curse is by no means universally accepted, giving rise to an exploration of how its manifestation can be avoided. From the perspective of a firm in the extractive resource industry, institutional frameworks (or lack thereof) in different regions present risks that must be considered, and if possible, mitigated. This, in turn, presents a number of important questions, including but not limited to: What is the proper role of the private sector, and what obligation does local government have? How do contracts and overall political stability influence investment? What role should foreign investors play in supporting long-term, sustainable regional development? 

 

Research Protocol and Executive Summary 

   Kenneth B. Medlock III, Keily Miller

Working Papers 

•  "The Collapse of the Venezuelan Oil Industry: The Role of Above-ground Risks Limiting FDI"    

Francisco Monaldi, Igor Hernández, José La Rosa

• "Confronting the Resource Curse: Advice for Investors and Partners

    David Goldwyn, Andrea Clabough

• "Shale Renders the ‘Obsolescing Bargain’ Obsolete: Political Risk and Foreign Investment in Argentina’s  Vaca Muerta"

   Gabe Collins, Mark Jones, Jim Krane, Ken Medlock, Francisco Monaldi

• "The Case of the Gulf Cooperation Council

   Paul Stevens

• "The Geopolitics of FDI: Can Weak States Deter Hegemons Using Foreign Investment?

   Jim Krane

• "Resource Curse Dynamics, the Corporate License to Operate, and the Potential of Direct Cash Dividends

   Todd Moss

• "Japan’s FDI to the Middle East Energy Sectors: The Objectives, Outcomes and Implications

   Ken Koyama

• "Permian Basin Energy Producers Invest in Community Infrastructure: Motivations, Impacts, and Implications for Corporate Citizenship

   Gabe Collins

• "Does Foreign Aid Help or Hurt FDI? That is the Question

   Michelle Foss

• "What attracts FDI in resource-rich regions? Risk, reward and the calculus of investment" (forthcoming,        under review)

   Peter Hartley, Ken Medlock

 

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Other FDI-related research and interviews