Infrastructure Quality and FDI Inflows: Evidence from the Arrival of High-Speed Internet in Africa

doi:10.1093/wber/lhad021

Publication:
Infrastructure Quality and FDI Inflows: Evidence from the Arrival of High-Speed Internet in Africa

creativeworkseries.issn	1564-698X
dc.contributor.author	Mensah, Justice Tei
dc.contributor.author	Traore, Nouhoum
dc.date.accessioned	2024-03-29T21:01:46Z
dc.date.available	2024-03-29T21:01:46Z
dc.date.issued	2023-08-10
dc.description.abstract	Does ambient infrastructural quality affect foreign direct investment (FDI) in developing countries This paper investigates how the arrival of high-speed internet in Africa triggered FDI into the region. It also explores the role of complementary infrastructure, such as access to electricity and road connectivity, in amplifying the impact of internet connectivity on investment. To causally estimate impacts, the paper exploits plausibly exogenous variations in access to high-speed internet induced by the staggered arrival of submarine fiber-optic internet cables and spatial variations in terrestrial fiber cable networks across locations on the continent. Findings from the paper indicate that access to high-speed internet induces FDI, particularly in the service sector, with the finance, technology, retail, and health services subsectors as the main beneficiaries. Access to (hard) infrastructure, such as electricity and roads, amplifies the impact of internet connectivity on FDI, thus highlighting the role of complementarities in the impact of infrastructure. Further, the results suggest that improvement in quality of governance and increased performance of incumbent firms are plausible mechanisms.	en
dc.identifier	http://documents.worldbank.org/curated/en/099922102022479712/IDU1151e80711278814b601a93415ae4efb1f1c9
dc.identifier.citation	The World Bank Economic Review
dc.identifier.doi	10.1596/41334
dc.identifier.issn	0258-6770 (print)
dc.identifier.issn	1564-698X (online)
dc.identifier.uri	https://hdl.handle.net/10986/41334
dc.language	English
dc.language.iso	en_US
dc.publisher	Published by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseries	World Bank Economic Review
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subject	INTERNET
dc.subject	FDI
dc.subject	SERVICES
dc.subject	BANKING
dc.subject	TECHNOLOGY
dc.title	Infrastructure Quality and FDI Inflows	en
dc.title.subtitle	Evidence from the Arrival of High-Speed Internet in Africa	en
dc.type	Journal Article
dspace.entity.type	Publication
okr.associatedcontent	https://academic.oup.com/wber/article/38/1/1/7240369 Journal website (version of record)
okr.crossref.title	Infrastructure Quality and FDI Inflows: Evidence from the Arrival of High-Speed Internet in Africa
okr.date.disclosure	2024-03-29
okr.date.lastmodified	2024-03-26T00:00:00Z	en
okr.doctype	Journal Article
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099922102022479712/IDU1151e80711278814b601a93415ae4efb1f1c9
okr.guid	099922102022479712
okr.guid	099513303262470445
okr.identifier.docmid	IDU-151e8071-2788-4b60-a934-5ae4efb1f1c9
okr.identifier.doi	10.1093/wber/lhad021
okr.identifier.doi	https://doi.org/10.1596/41334
okr.identifier.externaldocumentum	34250669
okr.identifier.internaldocumentum	34250669
okr.identifier.report	187519
okr.import.id	3715
okr.imported	true	en
okr.language.supported	en
okr.pagenumber	1-23
okr.pdfurl	http://documents.worldbank.org/curated/en/099922102022479712/pdf/IDU1151e80711278814b601a93415ae4efb1f1c9.pdf	en
okr.peerreview	Academic Peer Review
okr.region.geographical	Africa
okr.topic	International Economics and Trade::Foreign Direct Investment
okr.topic	Information and Communication Technologies::Telecommunications Infrastructure
okr.topic	International Economics and Trade::Access to Markets
okr.unit	Office of the Chief Economist (AFECE)
okr.volume	38 (1)
relation.isJournalIssueOfPublication	1585dc00-eb69-435e-b7d2-cc9fff48d2e3
relation.isJournalIssueOfPublication.latestForDiscovery	1585dc00-eb69-435e-b7d2-cc9fff48d2e3
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