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The Effects of Geography and Infrastructure on Economic Development and International Business Involvement

Author

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  • John S. Hill

    (Miller Professor of International Business Department of Management & Marketing University of Alabama, Alabama, USA jhill@cba.ua.edu)

  • Myung-Su Chae

    (Professor of Marketing, Hankuk University of Foreign Studies School of Business Administration Seoul, South Korea mschae@hufs.ac.kr)

  • Jinseo Park

Abstract

The objective of this article is to bring together geographic, marketing and economic perspectives to examine how far infrastructure development can offset adverse national geographies in aiding economic development and involvement in the global economy. We use LISREL structural equation modelling to investigate relationships between geography, infrastructure, economic development and country’s involvement in trade and foreign direct investment. Results identify key geographic factors affecting global market involvement and key infrastructures (electricity production, telephone lines and container facilities at ports) facilitating economic development and international participation.

Suggested Citation

  • John S. Hill & Myung-Su Chae & Jinseo Park, 2012. "The Effects of Geography and Infrastructure on Economic Development and International Business Involvement," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 91-113, December.
    • Handle: RePEc:sae:jouinf:v:4:y:2012:i:2:p:91-113
    DOI: 10.1177/0974930612465205
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    More about this item

    Keywords

    Geography; infrastructure; economic development; international business involvement; C30 (multiple or simultaneous equation models; multiple variables); O19 (international linkages in development); Q32 (exhaustible resources and economic development); R40 (transportation systems);
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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