Communications Networks and Foreign Direct: Investment in Developing Countries

Reamonn Lydon () and Mark Williams

MPRA Paper from University Library of Munich, Germany

Abstract: It is widely accepted that investment is essential for the long-term economic growth of developing countries. There is some evidence that Foreign Direct Investment (FDI) in developing countries provides spill-over benefits through technology and skills transfer. Understanding the determinants of FDI inflows into developing countries is therefore an important policy objective. This paper shows that average FDI inflows into developing countries are greater in countries that have better telecommunications networks. In more recent years, this relationship can also be detected between FDI and mobile networks. The analysis has been refined to take account of countries' endowment of natural resources and the an attempt has been made to deal with the problem of endogeneity.

Keywords: Africa; capital flows; foreign direct investment; investment risk; developing; countries and telecommunications (search for similar items in EconPapers)
JEL-codes: F21 L41 L43 L96 O3 (search for similar items in EconPapers)
Date: 2005-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in International Journal of Digital Economics 58 (2005): pp. 43-60

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/2492/1/MPRA_paper_2492.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2492

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().