Author : Lorenz Hahn
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)
Book Synopsis The Role of the Government in Attracting FDI in Infrastructure in Developing Countries by : Lorenz Hahn
Download or read book The Role of the Government in Attracting FDI in Infrastructure in Developing Countries written by Lorenz Hahn and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This master thesis presents an empirical analysis of the role of the government in attracting foreign direct investment in infrastructure in developing countries using panel data from 52 emerging countries in the time period between 1995 and 2012. I find that through several channels the government plays an important role in attracting FDI in infrastructure. Restrictions on FDI inflows imposed by the government are found to have a negative impact. Evidence is provided on the positive influence of a strong regulatory environment, where property rights are protected and contracts enforced. I also find that investors shun countries with highly volatile exchange rates. Government constraints in the form of a high debt burden are shown to have a positive impact on the value of FDI in infrastructure, as a tight government budget makes the inclusion of private and foreign capital necessary. Robustness tests show that the results are valid across various time horizons and regions. However, the role of the government in attracting FDI in infrastructure varies across different types of infrastructure assets.