Foreign direct investment, natural disasters, and economic growth of host countries

This chapter examines the impact of inward foreign direct investment (FDI) on a host country's economic recovery following the occurrence of a natural disaster. An assessment of the extant literature shows that little has been done to assess the nexus between inward FDI andnatural disasters, with most FDI-based studies examining the determinants of FDI inflows (Dunning, 1993; Resmini, 2000; Singh & Jun, 1995) and the relationships between FDI and economic growth (Chowdhury & Mavrotas, 2006; Nair-Reichert & Weinhold, 2001). Of those with a specific natural disaster focus, it remains inconclusive whether and how FDI interacts with the host country's economy following the occurrence of a natural disaster