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The last section briefly explores how weak the host government contributes to the adverse impact of FDI on developing countries. The academic sources or references used in this paper are peer-reviewed journals and scholarly books.Some scholars have reported the negative impact of resource-based FDI on the economic growth of developing countries. The local investment could be saturated and local entrepreneurship and competition could be inhibited. Resource-based FDI could heighten income disparity as established industries weaken, and employees from these industries may experience difficulties entering new ones.