Transportation infrastructure availability is a key factor shaping business location decisions and hence foreign direct investment (FDI) inflows. Countries with more efficient interconnected transportation networks might be more competitive and attractive for the private sector when deciding to relocate or to start operations in a new location. Several authors have discussed the importance of infrastructure in attracting FDI. These include Wheeler and Mody (1992), Loree and Guisinger (1995), Kinoshita (1998), Richaud et al. (1999), Canning and Bennathan (2000), Kumar (2001), Asiedu (2002, 2006), and Ochi, et al 2012 among others.
When selecting a location to do business, foreign direct investors typically face the tradeoff between moving to an emerging economy to take advantage of lower labor costs and higher transport costs due to inadequate transportation infrastructure. Transportation public capital may improve the productivity of FDI. While studies have concentrated on developed economies, research on emerging markets and particularly in Latin America are scarce.
This special issue is devoted to investigate the role of transport infrastructure and other key determinants in enhancing the attractiveness of FDI recipient countries. Authors are expected to provide their research results at the global, national, state, municipal, or firm level and compare them. Priority will be given to econometric articles (e.g. spatial, dynamic, panel data, time-series, instrumental variables, etc) aimed at providing quantitative analysis in addition to suggested empirical evidence.