Empirical Analysis of the Dynamic Relationships between Transport, ICT and FDI in 63 Countries

Abstract

This study examines the relationship between information and communication technologies (ICT), transport, and foreign direct investment (FDI) in countries with different income levels over the period 2000-2016. We investigate the impact of ICT and transport on territorial attractiveness of FDI in host countries. A global panel of 63 countries has been divided into three sub-panels. Using the GMM estimators, we found that these variables influence each other in the long-run. The causality direction varies across panels with different levels of significance. These empirical investigations are of particular interest to policymakers in both developed and developing countries. They prove the major impact of transport and ICT infrastructures on economic development of host countries through their significant contribution to improve FDI attractiveness. Moreover, the results confirm the positive role of transport and ICTs in supporting economic growth by strengthening countries’ economic openness and increasing their participation in international trade.

KEYWORDS:

• Transportation infrastructures
• information and communication technologies
• foreign direct investments
• economic growth
• GMM

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Saidi Samir

Saidi Samir, a Higher Education Assistant at the Faculty of Economics and Management of Sfax at the University of Sfax, Tunisia. He obtained his doctorate in economics from the University of Sfax. He has published numerous articles in Economics Concerning; Endogenous Economic Growth, Foreign Direct Investment, Transportation, Energy and Related Topics.

Haifa Mefteh

Haifa Mefteh, a Doctor of Economics from the University of Sfax, Tunisia. She is a higher education assistant at the Faculty of Economics and Management of Sfax at the University of Sfax, Tunisia. She has published numerous articles in Economics Concerning; Economic Growth, Human Capital Accumulation, ICT and Related Subjects.