2014
DOI: 10.1007/s11294-013-9457-5
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The Interaction Between FDI and Infrastructure Capital in The Development Process

Abstract: This paper focuses on the possible interaction between foreign direct investment (FDI) and the host country's infrastructure base. Its central hypothesis is that the effect of FDI on per capita real income depends, at least in part, on the size of the recipient country's infrastructure. This hypothesis is tested in a panel of 46 countries and 5-year averages over the 1980-2000 period using the size of three types of infrastructure capital: telecommunication, power generation, and network of roads or highways. … Show more

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Cited by 17 publications
(12 citation statements)
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“…First of all, we test for the standard FDI determinants including market size, trade openness, labor cost, as well as human capital using school enrollment on secondary education as an appropriate proxy (see Nourzad et al., ; Sekkat and Veganzones‐Varoudakis, ; Agiomirgianakis et al., ). Moreover, we test for the impact of market instability proxied by inflation as well as for the impact of the share of gross capital formation on FDI inflows.…”
Section: Methodsmentioning
confidence: 99%
“…First of all, we test for the standard FDI determinants including market size, trade openness, labor cost, as well as human capital using school enrollment on secondary education as an appropriate proxy (see Nourzad et al., ; Sekkat and Veganzones‐Varoudakis, ; Agiomirgianakis et al., ). Moreover, we test for the impact of market instability proxied by inflation as well as for the impact of the share of gross capital formation on FDI inflows.…”
Section: Methodsmentioning
confidence: 99%
“…The real effective exchange rate is positively correlated with FDI inflows in the long run, but not in the short run (Ramirez and Kőműves, 2014). The analysis of the potential interaction between FDI and the host country's infrastructure base (employing a panel dataset involving 46 countries, using the size of three types of infrastructure capital: telecommunication, power generation, and network of roads or highways) approves that the size of the host country's infrastructure base assists to increase the effect of FDI on real income (Nourzad et al, 2014).…”
Section: Literature Reviewmentioning
confidence: 99%
“…One type of research focuses on the interaction effect of FDI and Infrastructure on economic growth. Nourzad et al (2014) put forward hypotheses that the effect of FDI on per capita real income depends on the size of the host country's infrastructure and verified the hypothesis. Sui et al (2017) analyzed the relationship between China's FDI in the countries along the Belt and Road, the infrastructure construction along the Belt and Road and the actual GDP of these countries based on the unbalanced panel data of 64 countries from 2003 to 2012.…”
Section: Literature Reviewmentioning
confidence: 88%