Foreign Direct Investment (FDI) extractive industries (mining and quarrying) is expected to increase dramatically many developing countries, due to the rising global demand for commodities. One key question for policymakers is whether this form of FDI could help spur investments other sectors, order to help boost their countries’ long term growth prospects. Countries with large extractive industries seek to promote economic diversification, so other types of FDI would also be critical this regard. This paper analyzes whether mining FDI crowds or crowds in FDI other sectors via intersectoral linkages. It utilizes a novel data set covering sector-disaggregated FDI flows 70 countries from 1985 to 2010. Results show differential effects of mining FDI on FDI other sectors (manufacturing, services, financial services, non-financial services) and across country groups. Some of the interesting results are seen the high income countries group, where mining FDI is observed to have crowding out effect on total services and more specifically, financial services FDI and the lower middle income countries group, where mining FDI is observed to crowd both manufacturing and financial services FDI.