Kneller, RichardAlzahrani, Ohud2024-07-102024-07-102024-07-10https://hdl.handle.net/20.500.14154/72547Foreign direct investment (FDI), trade openness and natural resource endowments are critical factors shaping a nation's economic growth prospects. However, the interplay among these factors and how their impact differs between oil-rich and non-oil resource-rich countries remains underexplored. The study investigates the impact of FDI and trade openness on economic growth in countries rich in oil resources compared to non-oil resources like minerals and agriculture. Using a panel dataset from 2000–2022 for 22 countries (11 oil exporters and 11 non-oil resource exporters), the study employs panel fixed effects regression models with GDP growth as the dependent variable and FDI and trade openness as independent variables. Robustness checks are conducted through two methods: 1) splitting the sample into oil-rich and non-oil resource-rich nations to examine if FDI and trade openness impacts vary by resource type, and 2) using Driscoll-Kraay standard errors to address cross-sectional dependence and heteroscedasticity in the panel data. The findings suggest that FDI consistently positively impacts economic growth in both oil-rich and non-oil resource-rich economies. However, the influence of trade, particularly exports, varies, showing a positive effect on economic growth in specific non-oil resource sectors. Robustness checks using different methods confirm the reliability of the results. The study contributes to understanding how FDI and trade openness interact differently in oil-rich versus non-oil resource-rich economies, emphasising the importance of economic diversification and attracting FDI to leverage resource wealth for sustained economic growth.55enForeign direct investment (FDI)trade opennessnatural resourceOil-Rich CountriesNon-Oil-Rich-countriesThesis