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Do Transport Infrastructures Promote the Foreign Direct Investments Attractiveness? Empirical Investigation from Four North African Countries

Samir Saidi and Sami Hammami

Romanian Economic Journal, 2018, vol. 21, issue 67, 110-125

Abstract: The relationship among foreign direct investments and economic growth is a very controversial issue that has given rise to an abundant literature. Numerous research studies examine the bidirectional causal relationship and investigate the major determinants of these investments. In the same order of ideas, this article gives an empirical study from four North African countries to evaluate the role of transport infrastructures to improve the territorial attractiveness for the foreign direct investment. The present paper starts by a theoretical study explaining the role of transport as a major determinant of FDI. In a second section, we represent the empirical study. By using an econometric model with panel data, we found that traditional determinants of FDI have the most significant influence on the international investors’ decision. However, the same findings verify a positive impact of transport and consider it as a new important factor with strategic issues that cannot be avoided. The empirical validation from the four countries leads to verify that it is necessary to adopt development strategies that take into account the transport infrastructures and logistics function

Keywords: Transport infrastructures; foreign direct investments; economic development; and territorial attractiveness (search for similar items in EconPapers)
JEL-codes: C33 F21 H54 N7 R42 (search for similar items in EconPapers)
Date: 2018
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