The Causal Relationship between ICT and FDI

Roghieh Gholami, Sang-Yong Tom Lee and Almas Heshmati ()

No RP2005-26, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper investigates the simultaneous causal relationship between investments in information and communication technology (ICT) and flows of foreign direct investment (FDI), with reference to its implications on economic growth. For the empirical analysis we use data from 23 major countries with heterogeneous economic development for the period 1976-99. Our causality test results suggest that there is a causal relationship from ICT to FDI in developed countries, which means that a higher level of ICT investment leads to an increase inflow of FDI.

Keywords: Econometric models (Economic development); Information technology; Foreign investments (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (13)

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