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The Interaction of Foreign Direct Investment with Electronic Commerce in Less Developed Countries

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  • Guilherme Pires
  • John Stanton
  • Ioannis-Dionysios Salavrakos

Abstract

This paper argues that the international growth of e-commerce (whether business--business, business--consumer or consumer--business) can increase a critical technology infrastructure gap that disadvantages less-developed countries (LDCs) in their future e-commerce participation. This gap is linked to the type as well as the volume of foreign direct investment (FDI) which economies at different levels of development attract. The macro technical, legal and socio-economic problems that entwine FDI inflow and e-commerce growth in LDCs, reducing e-commerce attractiveness and also making FDI less attractive, are classified. Governments must recognise this interdependence, pin-point the types of macro constraints operating in their particular economy that curb FDI in e-commerce attracting investment and prioritise the desirability and incentives offered to the various types of FDI infrastructure.

Suggested Citation

  • Guilherme Pires & John Stanton & Ioannis-Dionysios Salavrakos, 2010. "The Interaction of Foreign Direct Investment with Electronic Commerce in Less Developed Countries," Forum for Social Economics, Taylor & Francis Journals, vol. 39(2), pages 127-143, January.
    • Handle: RePEc:taf:fosoec:v:39:y:2010:i:2:p:127-143
    DOI: 10.1007/s12143-008-9021-x
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    References listed on IDEAS

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