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Communications Networks and Foreign Direct: Investment in Developing Countries

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  • Lydon, Reamonn
  • Williams, Mark

Abstract

It is widely accepted that investment is essential for the long-term economic growth of developing countries. There is some evidence that Foreign Direct Investment (FDI) in developing countries provides spill-over benefits through technology and skills transfer. Understanding the determinants of FDI inflows into developing countries is therefore an important policy objective. This paper shows that average FDI inflows into developing countries are greater in countries that have better telecommunications networks. In more recent years, this relationship can also be detected between FDI and mobile networks. The analysis has been refined to take account of countries' endowment of natural resources and the an attempt has been made to deal with the problem of endogeneity.

Suggested Citation

  • Lydon, Reamonn & Williams, Mark, 2005. "Communications Networks and Foreign Direct: Investment in Developing Countries," MPRA Paper 2492, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2492
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    References listed on IDEAS

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    Cited by:

    1. Shah, Mumtaz Hussain & Khan, Faisal, 2019. "Telecommunication Infrastructure Development and FDI into Asian Developing Nations," MPRA Paper 107255, University Library of Munich, Germany.
    2. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Sara E. Bennett, 2018. "Mobile telephony, economic growth, financial development, foreign direct investment, and imports of ICT goods: the case of the G-20 countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 279-310, June.
    3. Ojo Olukayode Iwaloye & Hong Kei Im & Adeniyi Damilola Olarewaju & Ayantunji Gbadamosi & Jose Alves & Michael Trimarchi, 2022. "The Emergence of Resources Seeking Chinese Firms’ Specific Advantages in Emerging Market," Sustainability, MDPI, vol. 14(14), pages 1-15, July.

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    More about this item

    Keywords

    Africa; capital flows; foreign direct investment; investment risk; developing; countries and telecommunications;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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