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

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  • Hoffmann, M.

Abstract

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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    2. 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.
    3. Rehman, Faheem Ur & Khan, Muhammad Asif & Khan, Muhammad Atif & Pervaiz, Khansa & Liaqat, Idrees, 2020. "The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index," Research in International Business and Finance, Elsevier, vol. 52(C).
    4. Philip R Lane, 2014. "External Funding and Long-term Investment," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    5. 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.
    6. Faheem Ur Rehman & Yibing Ding & Abul Ala Noman & Muhammad Asif Khan, 2020. "The Nexus Between Infrastructure and Export: An Empirical Evidence from Pakistan," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 12(2), pages 141-157, May.
    7. Faheem Ur Rehman & Ejaz Ahmad & Muhammad Asif Khan & József Popp & Judit Oláh, 2021. "Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified?," Sustainability, MDPI, vol. 13(10), pages 1-21, May.

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