Abstract
Purpose: China's Belt and Road Initiative (BRI) is the most ambitious investment strategy for infrastructural development belonging to the significant potential for stimulating regional economic growth in Asia, Europe and Africa. This study aims to investigate the impact of infrastructure on spurring inward foreign direct investment (FDI) within the purview of human capital, GDP per capita, foreign aid, trade, domestic investment, population and institutional quality in BRI countries. Design/methodology/approach: In doing so, the authors analyze panel data from 2000 to 2019 within the framework of the system generalized method of movement (GMM) approach for 66 BRI countries from Europe, Asia, Africa and the Middle East. Findings: The investigated results demonstrate that aggregate and disaggregate infrastructure indices, e.g. transport, telecommunications, financial and energy infrastructures, are the driving forces in attracting foreign direct investment (FDI) in the BRI countries. In addition, control variables (i.e. institutional quality, human capital, trade, domestic investment, foreign aid and GDP per capita) play an essential role in spurring FDI inflows. Originality/value: The authors’ study uniquely investigates both the pre- (2000–2012) and post- (2013–2019) BRI scenarios using the aggregate and disaggregate infrastructural components from the perspectives of full and clustered sample regions, such as Asia, Europe, Africa and the Middle East. The study provides several policy implications.
Original language | English |
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Pages (from-to) | 1026-1050 |
Number of pages | 25 |
Journal | International Journal of Emerging Markets |
Volume | 19 |
Issue number | 4 |
DOIs | |
State | Published - 19 Mar 2024 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2022, Emerald Publishing Limited.
Keywords
- Belt and Road Initiative countries
- FDI
- GMM
- Infrastructure
ASJC Scopus subject areas
- General Business, Management and Accounting