The Interaction Between FDI and Infrastructure Capital in The Development Process

Authors

Farrokh Nourzad, Marquette UniversityFollow
David N. Greenwold, Associated Bank
Rui Yang, Marquette University

Document Type

Article

Language

eng

Format of Original

10 p.

Publication Date

1-2014

Publisher

Springer

Source Publication

International Advances in Economic Research

Source ISSN

1083-0898

Abstract

This paper focuses on the possible interaction between foreign direct investment (FDI) and the host country’s infrastructure base. Its central hypothesis is that the effect of FDI on per capita real income depends, at least in part, on the size of the recipient country’s infrastructure. This hypothesis is tested in a panel of 46 countries and 5-year averages over the 1980–2000 period using the size of three types of infrastructure capital: telecommunication, power generation, and network of roads or highways. The results indicate that the size of the host country’s infrastructure base helps to improve the marginal effect of FDI on real income.

Comments

Accepted version. International Advances in Economic Research, Vol. 20, No. 2 (January 2014), 203-212. DOI. © 2014 International Atlantic Economic Society. Used with permission.

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Recommended Citation

Nourzad, Farrokh; Greenwold, David N.; and Yang, Rui, "The Interaction Between FDI and Infrastructure Capital in The Development Process" (2014). Economics Faculty Research and Publications. 399.
https://epublications.marquette.edu/econ_fac/399