Impact of Sectoral Infrastructure on Export and Foreign Direct Investment Inflow: Evidence from Selected South Asian Economies by Applying a New Global Infrastructure Index
Publication: Journal of Infrastructure Systems
Volume 29, Issue 1
Abstract
This study investigates the dynamic effect of decomposed infrastructure development on foreign direct investment inflow (FDI) and export from selected South Asian countries by applying advanced econometric approaches. Our empirical results demonstrate that aggregated and disaggregated infrastructure development indicators (including the transport, energy, financial, and telecommunication sectors) significantly promote FDI and export in the long run. Human capital and quality of institutes spur export while the exchange rate impedes it. Besides, exchange rate, human capital, and institutional quality are driving factors to promote FDI inflows. Our findings are robust under different econometric approaches. Panel Granger causality found no reverse causality between infrastructure, and our two regressed both export and FDI inflows. The study offers policy insights to comprehend the long-run role of infrastructure to explain export and FDI inflows equations.
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Data Availability Statement
No data, models, or code were generated or used during the study.
Acknowledgments
Research funding from the Ministry of Science and Higher Education of the Russian Federation (Ural Federal University project within the Priority-2030 Program) is gratefully acknowledged. The authors also acknowledge the contribution of Dr. Julian Donaubauer for his cooperation in providing the complete dataset of the Global Infrastructure Index. We are also thankful to Mr. Md. Monirul Islam, Ph.D. Fellow, Graduate School of Economics and Management (GSEM), Ural Federal University (UrFU), Russia & Assistant Professor, for his suggestion while we were working on addressing anonymous reviewer’s comments.
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Published In
Journal of Infrastructure Systems
Volume 29 • Issue 1 • March 2023
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Sep 15, 2020
Accepted: Jul 17, 2022
Published online: Nov 25, 2022
Published in print: Mar 1, 2023
Discussion open until: Apr 25, 2023
ASCE Technical Topics:
- Aggregates
- Asset management
- Business management
- Energy infrastructure
- Financial management
- Inflow
- Infrastructure
- Investments
- Lifeline systems
- Pavements
- Personnel management
- Practice and Profession
- River engineering
- Rivers and streams
- Transportation engineering
- Transportation management
- Transportation networks
- Water and water resources
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