The Foreign Direct Investment Job Multiplier During a Resource Boom: Evidence from Mongolia
Publication | December 2021
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This paper explores the job creation impacts of the large foreign direct investment (FDI) inflows to Mongolia’s non-resource sector following the signing of the investment agreement for the Oyu Tolgoi mine in 2009.
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Resource booms can lead to impressive growth rates in resource-rich developing countries. The paper examines the link between resource booms triggered by new resource projects and FDI inflows into the non-resource sector on one hand, and FDI and job creation on the other. Its analysis focuses on the non-resource sector, where the positive economic effects of FDI are more pronounced than in the extractive sector.
Contents
- Introduction
- Resource Booms, Non-resource Foreign Direct Investment, and Local Job Multipliers
- Oyu Tolgoi Context
- The Foreign Direct Investment Local Job Multiplier
- Conclusions
- Appendix
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