Save

Determinants of FDI in South Asia: Role of Infrastructure, Trade Openness and Reforms

In: The Journal of World Investment & Trade
Author:
Pravakar SahooAssociate Professor, Institute of Economic Growth (IEG), Delhi University Enclave, Delhi, India pravakarfirst@gmail.com

Search for other papers by Pravakar Sahoo in
Current site
Google Scholar
PubMed
Close
Download Citation Get Permissions

Access options

Get access to the full article by using one of the access options below.

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institution

Purchase

Buy instant access (PDF download and unlimited online access):

$34.95

The Foreign Direct Investment (FDI) environment underwent a sea change in South Asian countries during the 1990s, and more so in recent years. Though FDI inflows to South Asian countries have witnessed increasing trends, FDI inflow is still relatively low. In this context, the paper examines the determinants of FDI for South Asian countries with emphasis on infrastructure development, trade openness and reforms. The results reveal that major determinants of FDI in South Asia are market size, labor force, infrastructure stock, trade openness and economic reforms. Further, the panel causality analysis shows that there is a strong relationship between infrastructure development and FDI inflows. Therefore, the South Asian countries need to maintain their growth momentum, improve infrastructure facilities, frame policies for better use of abundant labor force and continue economic reforms with focus on trade policies to attract more FDI.

Content Metrics

All Time Past Year Past 30 Days
Abstract Views 657 169 22
Full Text Views 183 18 1
PDF Views & Downloads 104 45 3