Telecommunication Infrastructure Development and FDI into Asian Developing Nations

Shah, M.H., & Khan, F. (2019). Telecommunication Infrastructure Development and FDI into Asian Developing Nations. Journal of Business and Tourism. 5(1), 91-102.

12 Pages Posted: 26 Sep 2019

See all articles by Mumtaz Hussain Shah

Mumtaz Hussain Shah

Institute of Management Studies, University of Peshawar

Faisal Khan

University of Peshawar - Institute Of Management Studies

Date Written: June 30, 2019

Abstract

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.

Keywords: FDI, Telecommunication Infrastructure, Panel data

JEL Classification: C230, F210, F230

Suggested Citation

Shah, Mumtaz Hussain and Khan, Faisal, Telecommunication Infrastructure Development and FDI into Asian Developing Nations (June 30, 2019). Shah, M.H., & Khan, F. (2019). Telecommunication Infrastructure Development and FDI into Asian Developing Nations. Journal of Business and Tourism. 5(1), 91-102., Available at SSRN: https://ssrn.com/abstract=3455150

Mumtaz Hussain Shah (Contact Author)

Institute of Management Studies, University of Peshawar ( email )

University Road
Peshawar, Khyber Pukhtoon Khwa 25125
Pakistan

HOME PAGE: http://www.uop.edu.pk/departments/?q=Institute-of-Management-Studies

Faisal Khan

University of Peshawar - Institute Of Management Studies ( email )

Peshawar, KP 25000
Pakistan

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