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Empirical Analysis of the Dynamic Relationships between Transport, ICT and FDI in 63 Countries

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  • Saidi Samir
  • Haifa Mefteh

Abstract

This study examines the relationship between information and communication technologies (ICT), transport, and foreign direct investment (FDI) in countries with different income levels over the period 2000-2016. We investigate the impact of ICT and transport on territorial attractiveness of FDI in host countries. A global panel of 63 countries has been divided into three sub-panels. Using the GMM estimators, we found that these variables influence each other in the long-run. The causality direction varies across panels with different levels of significance. These empirical investigations are of particular interest to policymakers in both developed and developing countries. They prove the major impact of transport and ICT infrastructures on economic development of host countries through their significant contribution to improve FDI attractiveness. Moreover, the results confirm the positive role of transport and ICTs in supporting economic growth by strengthening countries’ economic openness and increasing their participation in international trade.

Suggested Citation

  • Saidi Samir & Haifa Mefteh, 2020. "Empirical Analysis of the Dynamic Relationships between Transport, ICT and FDI in 63 Countries," International Economic Journal, Taylor & Francis Journals, vol. 34(3), pages 448-471, July.
    • Handle: RePEc:taf:intecj:v:34:y:2020:i:3:p:448-471
    DOI: 10.1080/10168737.2020.1765186
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    Cited by:

    1. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    2. Niti Bhasin & Amit Soni & Rabi Narayan Kar, 2021. "Do Institutional and Macroeconomic Factors Matter in IT companies M&As? Evidence from India," Business Perspectives and Research, , vol. 9(2), pages 286-305, May.
    3. Saidi, Samir & Mani, Venkatesh & Mefteh, Haifa & Shahbaz, Muhammad & Akhtar, Pervaiz, 2020. "Dynamic linkages between transport, logistics, foreign direct Investment, and economic growth: Empirical evidence from developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 277-293.
    4. Davidmac O. Ekeocha & Jonathan E. Ogbuabor & Anthony Orji, 2022. "Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis," Economic Change and Restructuring, Springer, vol. 55(2), pages 931-950, May.
    5. Yselle F. Malah Kuete & Simplice A. Asongu, 2023. "Infrastructure Development as a Prerequisite for Structural Change in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1386-1412, June.
    6. Sule, Abubakar & Mohammed, Ibrahim Danlami & Ebeh, Eleojo Joy, 2023. "Foreign Direct Investment, Trade Openness and Economic Performance in Nigeria: Does Governance Quality Matter?," African Journal of Economic Review, African Journal of Economic Review, vol. 11(3), June.
    7. Jeunghan Lee & Keuntae Cho, 2023. "Effects of Science, Technology, and Innovation Official Development Assistance on Foreign Direct Investment in Developing Countries," Sustainability, MDPI, vol. 15(16), pages 1-13, August.

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