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Economic Climate, Infrastructure and FDI: Global Evidence with New Dimensions

Suborna Barua (), Junnatun Naym and Hazera-Tun-Nessa
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Junnatun Naym: Department of Finance, University of Dhaka, Bangladesh
Hazera-Tun-Nessa: Department of International Business, University of Dhaka, Bangladesh

International Journal of Business and Economics, 2017, vol. 16, issue 1, 31-48

Abstract: This study revisits how infrastructure and economic environment affect FDI inflow. Using static and dynamic estimations on 81 countries from 1995 to 2013, the study finds electricity availability having the strongest positive impact alongside Economic Freedom and GDP. However, urban population and unemployment shows negative impact. This study suggests for urbanization with lower cost of living and developed infrastructure to attract more FDI.

Keywords: FDI; infrastructure; investment climate; economic growth; electricity (search for similar items in EconPapers)
JEL-codes: F21 F23 F38 F43 P45 (search for similar items in EconPapers)
Date: 2017
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