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Cross-Country Evidence on the Link between the Level of Infrastructure and Capital Inflows


  • Hoffmann, M.


This paper empirically investigates the relationship between public infrastructrue and international capital flows. Out of a sample of thirty countries a cross-sectional econometric model is constructed to estimate the effects. Different components of infrastructure variables are tested in relation to their impact on different kinds of external capital liabilities. The resuts suggest a positive relationship between the level of infrastructure and capital inflows. However, statistical significance cannot be established for all variables in question.

Suggested Citation

  • Hoffmann, M., 2002. "Cross-Country Evidence on the Link between the Level of Infrastructure and Capital Inflows," CEG Working Papers 20024, Trinity College Dublin, Department of Economics.
  • Handle: RePEc:tcd:tcdceg:20024

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    Cited by:

    1. Anwar, Sajid, 2006. "Provision of public infrastructure, foreign investment and welfare in the presence of specialisation-based external economies," Economic Modelling, Elsevier, vol. 23(1), pages 142-156, January.
    2. Philip R Lane, 2014. "External Funding and Long-term Investment," RBA Annual Conference Volume,in: Alexandra Heath & Matthew Read (ed.), Financial Flows and Infrastructure Financing Reserve Bank of Australia.
    3. Julian Donaubauer & Birgit E. Meyer & Peter Nunnenkamp, 2016. "A New Global Index of Infrastructure: Construction, Rankings and Applications," The World Economy, Wiley Blackwell, vol. 39(2), pages 236-259, February.

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