FOREIGN DIRECT INVESTMENT STRATEGIES AND ECONOMIC DIVERSIFICATION IN RESOURCE-RICH NATIONS: A COMPARATIVE ANALYSIS
Keywords:
foreign direct investment, economic diversification, resource-rich nations, natural resources, Dutch disease, institutional framework, technology transfer, sustainable developmentAbstract
This article examines the role of foreign direct investment (FDI) strategies in promoting economic diversification within resource-rich nations. Through comprehensive analysis of global case studies and empirical data, this research investigates how natural resource-abundant countries can leverage FDI to reduce dependency on commodity exports and build sustainable, diversified economies. The study analyzes FDI patterns in major resource-rich nations including Norway, Australia, Kazakhstan, and the UAE, identifying successful diversification models and strategic approaches. The research reveals that targeted FDI policies, coupled with effective institutional frameworks and human capital development, significantly enhance economic diversification outcomes. However, challenges such as Dutch disease effects, institutional capacity constraints, and volatile commodity prices pose substantial barriers. The findings suggest that resource-rich nations require comprehensive FDI strategies that prioritize technology transfer, value-added manufacturing, and service sector development to achieve sustainable economic transformation.
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