The role of transport and logistics to attract foreign direct investment in the developing countries

Abstract

this paper analyses the importance of transportation and logistics among the determinants of foreign direct investment. Several works treated these investments and their significance for hosting economies. But the role of transport and logistics to attract the type of investment to the developing countries is not well studied. This work is initially based on the developing Mediterranean countries for the period of 2000–2009. Using panel data framework, the fixed effect model estimated a positive and significant coefficient for transport infrastructure and logistics function, implying that foreign direct investors are sensitive to transport and logistics.