International Journal of Business and Economics Volume 16, No. 1 June, 2017

Economic Climate, Infrastructure and FDI: Global Evidence with New Dimensions

Suborna Barua

Department of International Business, University of Dhaka, Bangladesh and Federation Business School, Federation University Australia, Australia

Junnatun Naym

Department of Finance, University of Dhaka, Bangladesh

Hazera-Tun-Nessa

Department of International Business, University of Dhaka, Bangladesh

Abstract

This study revisits how infrastructure and economic environment affect FDI inflow. Using static and dynamic estimations on 81 countries from 1995 to 2013, the study finds electricity availability having the strongest positive impact alongside Economic Freedom and GDP. However, urban population and unemployment shows negative impact. This study suggests for urbanization with lower cost of living and developed infrastructure to attract more FDI.

Keywords：FDI, infrastructure, investment climate, economic growth, electricity.

JEL Classifications：F21, F23, F38, F43, P45.

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