TY - JOUR
T1 - FDI inflows and urbanization
T2 - a cross-country comparison from Asia, Africa and Latin America
AU - Bhattacharya, Mita
AU - Behera, Smruti Ranjan
AU - Dash, Devi Prasad
AU - Apergis, Nicholas
N1 - Publisher Copyright:
© 2023 IMI.
PY - 2023
Y1 - 2023
N2 - Since the last three decades, urbanization has been considered an engine of economic development and attracting foreign investment, particularly for developing countries. We explore the role of urbanization upon inward foreign direct investment (FDI) for a panel of 58 developing economies from Asia, Africa and Latin America. Empirical results reveal a complementary relationship between urbanization and FDI. Moreover, empirical findings suggest that urbanization in developing economies reaps positive benefits from FDI, provides MNCs with a safe investment climate and facilitates FDI inflows. Further, empirical results reflect the role of sociopolitical openness and infrastructure (in particular, energy and transport) in fostering FDI inflows. We suggest fostering appropriate infrastructure and sociopolitical openness will accelerate urban development and create a conducive environment for FDI inflows. Governments and policy practitioners should implement policies to mobilize foreign capital to accelerate urbanization.
AB - Since the last three decades, urbanization has been considered an engine of economic development and attracting foreign investment, particularly for developing countries. We explore the role of urbanization upon inward foreign direct investment (FDI) for a panel of 58 developing economies from Asia, Africa and Latin America. Empirical results reveal a complementary relationship between urbanization and FDI. Moreover, empirical findings suggest that urbanization in developing economies reaps positive benefits from FDI, provides MNCs with a safe investment climate and facilitates FDI inflows. Further, empirical results reflect the role of sociopolitical openness and infrastructure (in particular, energy and transport) in fostering FDI inflows. We suggest fostering appropriate infrastructure and sociopolitical openness will accelerate urban development and create a conducive environment for FDI inflows. Governments and policy practitioners should implement policies to mobilize foreign capital to accelerate urbanization.
KW - Developing economies
KW - foreign direct investment
KW - openness
KW - urbanization
UR - http://www.scopus.com/inward/record.url?scp=85166655688&partnerID=8YFLogxK
U2 - 10.1177/09721509231185829
DO - 10.1177/09721509231185829
M3 - Article
AN - SCOPUS:85166655688
SN - 0972-1509
JO - Global Business Review
JF - Global Business Review
ER -