The Crucial Role of Infrastructure in Attracting FDI

Author

Peter Nunnenkamp, Julian Donaubauer, Birgit Meyer

Content Type

Policy Brief

Institution

Columbia Center on Sustainable Investment

Abstract

It is widely believed that a country's infrastructure is a critical factor in sustaining economic growth, promoting trade and attracting foreign direct investment (FDI). However, better data are required to assess the links between infrastructure, FDI and economic development. The available measures are either restricted to specific aspects of economic infrastructure, or they cover only a limited number of countries over a short period of time.