Empirical Analysis of the Dynamic Relationships between Transport, ICT and FDI in 63 Countries

Saidi Samir and Haifa Mefteh

International Economic Journal, 2020, vol. 34, issue 3, 448-471

Abstract: This study examines the relationship between information and communication technologies (ICT), transport, and foreign direct investment (FDI) in countries with different income levels over the period 2000-2016. We investigate the impact of ICT and transport on territorial attractiveness of FDI in host countries. A global panel of 63 countries has been divided into three sub-panels. Using the GMM estimators, we found that these variables influence each other in the long-run. The causality direction varies across panels with different levels of significance. These empirical investigations are of particular interest to policymakers in both developed and developing countries. They prove the major impact of transport and ICT infrastructures on economic development of host countries through their significant contribution to improve FDI attractiveness. Moreover, the results confirm the positive role of transport and ICTs in supporting economic growth by strengthening countries’ economic openness and increasing their participation in international trade.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:taf:intecj:v:34:y:2020:i:3:p:448-471

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DOI: 10.1080/10168737.2020.1765186

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