Open AccessTelecommunication Infrastructure Development and FDI into Asian Developing Nations
Author(s) -
DR. MUMTAZ HUSSAIN SHAH,
FAISAL KHAN
Publication year - 2021
Publication title -
journal of business and tourism
Language(s) - English
Resource type - Journals
eISSN - 2521-0548
pISSN - 2520-0739
DOI - 10.34260/jbt.v5i1.116
Subject(s) - foreign direct investment , multinational corporation , developing country , panel data , business , currency , international economics , exchange rate , trade and development , economics , monetary economics , finance , econometrics , macroeconomics , economic growth
This study strives to evaluate the effects of infrastructure availability and development on foreign direct investment (FDI) in host developing nations.Employing fixed effects panel estimation technique, panel data for 23 Asian developing countries, from 1990-2009 is used with heteroscedasticity corrected standard errors. The results reveal a strong favourable impact of telecom infrastructure (measured by mobile subscriptions) in drawing inward FDI. Therefore, it is concluded that a country with improved infrastructure in general and telecom infrastructure in particular is likely to pull in more FDI. Other variables such as market size, economic development, and currency valuation (measured by exchange rate) appear important in captivating multinational investors, as they exhibit significant coefficients. On the contrary, high-inflation significantly deters inward FDI.