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Economic Climate, Infrastructure and FDI: Global Evidence with New Dimensions

Author

Listed:
  • Suborna Barua

    (Department of International Business, University of Dhaka, Bangladesh)

  • Junnatun Naym

    (Department of Finance, University of Dhaka, Bangladesh)

  • Hazera-Tun-Nessa

    (Department of International Business, University of Dhaka, Bangladesh)

Abstract

This study revisits how infrastructure and economic environment affect FDI inflow. Using static and dynamic estimations on 81 countries from 1995 to 2013, the study finds electricity availability having the strongest positive impact alongside Economic Freedom and GDP. However, urban population and unemployment shows negative impact. This study suggests for urbanization with lower cost of living and developed infrastructure to attract more FDI.

Suggested Citation

  • Suborna Barua & Junnatun Naym & Hazera-Tun-Nessa, 2017. "Economic Climate, Infrastructure and FDI: Global Evidence with New Dimensions," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(1), pages 31-48, June.
    • Handle: RePEc:ijb:journl:v:16:y:2017:i:1:p:31-48
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    References listed on IDEAS

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    More about this item

    Keywords

    FDI; infrastructure; investment climate; economic growth; electricity;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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