Telecommunication Infrastructure Development and FDI into Asian Developing Nations

Mumtaz Hussain Shah and Faisal Khan

MPRA Paper from University Library of Munich, Germany

Abstract: This study strives to evaluate the effects of infrastructure availability and development on foreign direct investment (FDI) in host developing nations. Employing fixed effects panel estimation technique, panel data for 23 Asian developing countries, from 1990-2009 is used with heteroscedasticity corrected standard errors. The results reveal a strong favourable impact of telecom infrastructure (measured by mobile subscriptions) in drawing inward FDI. Therefore, it is concluded that a country with improved infrastructure in general and telecom infrastructure in particular is likely to pull in more FDI. Other variables such as market size, economic development, and currency valuation (measured by exchange rate) appear important in captivating multinational investors, as they exhibit significant coefficients. On the contrary, high-inflation significantly deters inward FDI.

Keywords: FDI; Telecommunication Infrastructure; Panel data (search for similar items in EconPapers)
JEL-codes: C23 F21 F23 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-int and nep-sea
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Citations: View citations in EconPapers (1)

Published in Journal of Business and Tourism 1.5(2019): pp. 91-102

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