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Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries

Year 2015, Volume: 15 Issue: 2, 207 - 216, 01.05.2015

Abstract

The aim of this study is to investigate the relationship between foreign direct investments and telecommunication investments by using panel data analysis. Data’ are classified into 7 developing and 14 OECD countries for during the period 1975-2009. Different from the previous studies, cross sectional dependency and heterogeneity conditions are considered in the analysis. The results indicate that telecommunication investments are positive and significant determiners of foreign direct investments for both country groups. Additionally, this effect is more prominent in developing countries than developed countries. Accordingly, it may be put forward that the policies which aim to attract foreign direct investment via telecommunication investment will be effective

References

  • Agarwal, J.P. (1980) “Determinants of Foreign Direct Investment: A Survey” Weltwiltshaftliches, 96: 739-773.
  • Alexander, D. (2010) “The Relationship between In- formation and Communication Technologies and Fore- ign Direct Investment at the Different Stages of Invest- ment Development Path” Unpublished Doctoral Thesis, Hatfield, University of Pretoria Gordon Institute of Bu- siness Science.
  • Asiedu, E. (2002) “On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Dfferent?” World Development, 30(1): 107-119.
  • Aytun, C. ve Akın, C.S. (2014) “OECD Ülkelerinde Telekomünikasyon Altyapısı ve Ekonomik Büyüme: Ya- tay Kesit Bağımlı Heterojen Panel Nedensellik Analizi” İktisat İşletme ve Finans, 29(340): 69-94.
  • Baltagi, B. H. (2005) Econometric Analysis of Panel Data, 3rd Edition, Chichester, John Wiley & Sons.
  • Borensztein, E., Gregorio, J.D., ve Lee, J.W. (1998) “How does Foreign Direct Investment Affect Economic Growth?” Journal of International Economics, 45: 115- 135.
  • Breusch, T. S. ve Pagan, A. R. (1980) “The Lagrange Multiplier Test andits Applications to Model Specifica- tion in Econometrics” The Review of Economic Studies, 47(1): 239–253.
  • Chakrabarti, A. (2001) “The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions” Kyklos, 54(1): 89-114.
  • Chen, C.H. (1996) “Regional Determinants of Fo- reign Direct Investment in Mainland China” Journal of Economic Studies, 23(2): 18-26.
  • Cheng, L.K. ve Kwan, Y.K. (2000) “What are the De- terminants of the Location of Foreign Direct Investment? The Chinese Experience” Journal of International Econo- mics, 51: 379-400.
  • Choi, C. (2003) “Does the Internet Stimulate Inward Foreign Direct Investment?” Journal of Policy Modeling, 25(4): 319–326.
  • Colecchia, A. ve Schreyer, P. (2002) “ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries” Review of Economic Dynamics, 5(2): 408–442.
  • Dumitrescu, E.-I. ve Hurlin, C. (2012) “Testing for Granger Non-causality in Heterogeneous Panels” Econo- micModelling, 29(4): 1450–1460.
  • Economou, P. (2008) “Harnessing ICT for FDI and Development” Global Forum on International Invest- ment III, March 27-28, Paris.
  • Fielding, D. (1993) “Determinants of Investment in Kenya and C’ote d’Ivoire” Journal of African Economies, 2(3): 299-328.
  • Fielding, D. (1997) “Adjustment, Trade Policy and Investment Slumps: Evidence from Africa” Journal of De- velopment Economics, 52: 121-137.
  • Gholami, R., Lee, S.Y.T. ve Heshmati, A. (2005) “The Causal Relationship between ICT and FDI” WIDER Re- search Paper, No:2005/26.
  • Granger, C. W. J. (1969) “Investigating Causal Relati- ons by Econometric Models and Cross-spectral Methods” Econometrica, 37(3): 424–438.
  • Greene, J. ve Villanueva, D. (1991) “Private Invest- ment in Developing Countries” IMF Staff Papers, Vol. 38.
  • Im, K. S., Pesaran, M. H. ve Shin, Y. (2003) “Testing for Unit Roots in Heterogeneous Panels” Journal of Eco- nometrics, 115(1): 53–74.
  • Ketteni E., Kottaridi, C. ve Mamuneas, T. (2010), “Information and Communication Tehnology and Fore- ign Direct Investment” Annual Meeting of the Austrian Economic Association, May 14-15, Vienna.
  • Loree, D.W. ve Guisinger, S.E. (2009) “Policy and Non-Policy Determinants of US Equity Foreign Direct Investment” Journal of International Business Studies, 26(2): 281-299.
  • Mark, N. C., Ogaki, M. ve Sul, D. (2005) “Dynamic Seemingly Unrelated Cointegrating Regressions” The Re- view of Economic Studies, 72(3): 797–820.
  • McCoskey, S. ve Kao, C. (1998) “A Residual-based Test of the Null of Cointegration in Panel Data” Econo- metric Reviews, 17(1): 57–84.
  • Ndikumana, L. (2000) “Financial Determinants of Domestic Investment in Sub-Saharan Africa: Evidence from Panel Data” World Development, 28(2): 381-400.
  • Pedroni, P. (2000) “Fully ModiŞed OLS for Hetero- genous Cointegrated Panels” B. Baltagi (ed.) Advances in Econometrics, Bingley, Emerald.
  • Pesaran, M. H. (2004) “General Diagnostic Tests for Cross Section Dependence in Panels” Institute for the Study of Labor Working Papers, No:1240.
  • Pesaran, M. H. (2007) “A Simple Panel Unit Root Test in the Presence of Cross-section Dependence” Jour- nal of Applied Econometrics, 22(2): 265–312.
  • Pesaran, M. H., Ullah, A. ve Yamagata, T. (2008) “A Bias-adjusted LM Test of Error Cross-section Indepen- dence” Econometrics Journal, 11(1): 105–127.
  • Pesaran, M. H. ve Yamagata, T. (2008) “Testing Slo- pe Homogeneity in Large Panels” Journal of Econometrics, 142(1): 50–93.
  • Pohjola, M. (2002) “The New Economy in Growth and Development” Oxford Review of Economic Policy, 18(3): 380 –396.
  • Soper, D.S., Demirkan, H., Goul, M. ve Louis, R.S. (2006) “The Impact of ICT Expenditures On Instituti- onalized Democracy and Foreign Direct Investment in Developing Countries” 39th Hawaii International Confe- rence, Jan 4-7, Hawaii.
  • Terpstra, V. ve Yu, C.M. (1988) “Determinants of Fo- reign Investment of US Advertising Agencies” Journal of International Business Studies, 19(1): 33-46.
  • Uçan, O. ve Öztürk, Ö. (2011) “Financial Determi- nants of Investment for Turkey”, Journal of Economic and Social Studies 1(1): 83-110.
  • Veeramacheneni, B., Vogel, R. ve Ekanayake, E.M. (2008) “Information Technology, FDI and Economic Growth: An India Case Study” Southwestern Economic Review, 35(1): 95-112.
  • Wai, T. U. ve Wong, C. H. (1982) “Determinants of Private Investment in Developing Countries” Journal of Development Studies, 19 (1): 19-36.
  • Westerlund, J. ve Edgerton, D. L. (2007) “A Panel Bootstrap Cointegration Test” Economics Letters, 97(3): 185–190.

Gelişmiş ve Gelişmekte Olan Ülkelerde Telekomünikasyon Yatırımları ve Doğrudan Yabancı Sermaye Yatırımları İlişkisi

Year 2015, Volume: 15 Issue: 2, 207 - 216, 01.05.2015

Abstract

Bu çalışmanın hedefi telekomünikasyon yatırımları ile doğrudan yabancı sermaye yatırımları arasındaki ilişkinin panel veri analizi ile araştırılmasıdır. Veriler 7 gelişen ve 14 OECD üyesi ülke için 1975-2009 yıllarını kapsayacak şekilde gruplandırılmıştır. Önceki çalışmalardan farklı olarak uygulamada yatay kesit bağımlılığı ve heterojenlik göz önünde bulundurulmaktadır. Elde edilen bulgular her iki ülke grubu için de telekomünikasyon yatırımlarının ülkeye gelen doğrudan yabancı sermaye yatırımlarının pozitif ve anlamlı belirleyicisi olduğunu ortaya koymaktadır. Ayrıca bu etkinin gelişmiş ülkelerde gelişmekte olan ülkelerden daha büyük olduğu görülmektedir. Bu açıdan doğrudan yabancı sermaye yatırımlarını telekomünikasyon yatırımları aracılığı ile ülkeye çekmeyi hedefleyen politikaların etkili olacağı söylenebilir

References

  • Agarwal, J.P. (1980) “Determinants of Foreign Direct Investment: A Survey” Weltwiltshaftliches, 96: 739-773.
  • Alexander, D. (2010) “The Relationship between In- formation and Communication Technologies and Fore- ign Direct Investment at the Different Stages of Invest- ment Development Path” Unpublished Doctoral Thesis, Hatfield, University of Pretoria Gordon Institute of Bu- siness Science.
  • Asiedu, E. (2002) “On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Dfferent?” World Development, 30(1): 107-119.
  • Aytun, C. ve Akın, C.S. (2014) “OECD Ülkelerinde Telekomünikasyon Altyapısı ve Ekonomik Büyüme: Ya- tay Kesit Bağımlı Heterojen Panel Nedensellik Analizi” İktisat İşletme ve Finans, 29(340): 69-94.
  • Baltagi, B. H. (2005) Econometric Analysis of Panel Data, 3rd Edition, Chichester, John Wiley & Sons.
  • Borensztein, E., Gregorio, J.D., ve Lee, J.W. (1998) “How does Foreign Direct Investment Affect Economic Growth?” Journal of International Economics, 45: 115- 135.
  • Breusch, T. S. ve Pagan, A. R. (1980) “The Lagrange Multiplier Test andits Applications to Model Specifica- tion in Econometrics” The Review of Economic Studies, 47(1): 239–253.
  • Chakrabarti, A. (2001) “The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions” Kyklos, 54(1): 89-114.
  • Chen, C.H. (1996) “Regional Determinants of Fo- reign Direct Investment in Mainland China” Journal of Economic Studies, 23(2): 18-26.
  • Cheng, L.K. ve Kwan, Y.K. (2000) “What are the De- terminants of the Location of Foreign Direct Investment? The Chinese Experience” Journal of International Econo- mics, 51: 379-400.
  • Choi, C. (2003) “Does the Internet Stimulate Inward Foreign Direct Investment?” Journal of Policy Modeling, 25(4): 319–326.
  • Colecchia, A. ve Schreyer, P. (2002) “ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries” Review of Economic Dynamics, 5(2): 408–442.
  • Dumitrescu, E.-I. ve Hurlin, C. (2012) “Testing for Granger Non-causality in Heterogeneous Panels” Econo- micModelling, 29(4): 1450–1460.
  • Economou, P. (2008) “Harnessing ICT for FDI and Development” Global Forum on International Invest- ment III, March 27-28, Paris.
  • Fielding, D. (1993) “Determinants of Investment in Kenya and C’ote d’Ivoire” Journal of African Economies, 2(3): 299-328.
  • Fielding, D. (1997) “Adjustment, Trade Policy and Investment Slumps: Evidence from Africa” Journal of De- velopment Economics, 52: 121-137.
  • Gholami, R., Lee, S.Y.T. ve Heshmati, A. (2005) “The Causal Relationship between ICT and FDI” WIDER Re- search Paper, No:2005/26.
  • Granger, C. W. J. (1969) “Investigating Causal Relati- ons by Econometric Models and Cross-spectral Methods” Econometrica, 37(3): 424–438.
  • Greene, J. ve Villanueva, D. (1991) “Private Invest- ment in Developing Countries” IMF Staff Papers, Vol. 38.
  • Im, K. S., Pesaran, M. H. ve Shin, Y. (2003) “Testing for Unit Roots in Heterogeneous Panels” Journal of Eco- nometrics, 115(1): 53–74.
  • Ketteni E., Kottaridi, C. ve Mamuneas, T. (2010), “Information and Communication Tehnology and Fore- ign Direct Investment” Annual Meeting of the Austrian Economic Association, May 14-15, Vienna.
  • Loree, D.W. ve Guisinger, S.E. (2009) “Policy and Non-Policy Determinants of US Equity Foreign Direct Investment” Journal of International Business Studies, 26(2): 281-299.
  • Mark, N. C., Ogaki, M. ve Sul, D. (2005) “Dynamic Seemingly Unrelated Cointegrating Regressions” The Re- view of Economic Studies, 72(3): 797–820.
  • McCoskey, S. ve Kao, C. (1998) “A Residual-based Test of the Null of Cointegration in Panel Data” Econo- metric Reviews, 17(1): 57–84.
  • Ndikumana, L. (2000) “Financial Determinants of Domestic Investment in Sub-Saharan Africa: Evidence from Panel Data” World Development, 28(2): 381-400.
  • Pedroni, P. (2000) “Fully ModiŞed OLS for Hetero- genous Cointegrated Panels” B. Baltagi (ed.) Advances in Econometrics, Bingley, Emerald.
  • Pesaran, M. H. (2004) “General Diagnostic Tests for Cross Section Dependence in Panels” Institute for the Study of Labor Working Papers, No:1240.
  • Pesaran, M. H. (2007) “A Simple Panel Unit Root Test in the Presence of Cross-section Dependence” Jour- nal of Applied Econometrics, 22(2): 265–312.
  • Pesaran, M. H., Ullah, A. ve Yamagata, T. (2008) “A Bias-adjusted LM Test of Error Cross-section Indepen- dence” Econometrics Journal, 11(1): 105–127.
  • Pesaran, M. H. ve Yamagata, T. (2008) “Testing Slo- pe Homogeneity in Large Panels” Journal of Econometrics, 142(1): 50–93.
  • Pohjola, M. (2002) “The New Economy in Growth and Development” Oxford Review of Economic Policy, 18(3): 380 –396.
  • Soper, D.S., Demirkan, H., Goul, M. ve Louis, R.S. (2006) “The Impact of ICT Expenditures On Instituti- onalized Democracy and Foreign Direct Investment in Developing Countries” 39th Hawaii International Confe- rence, Jan 4-7, Hawaii.
  • Terpstra, V. ve Yu, C.M. (1988) “Determinants of Fo- reign Investment of US Advertising Agencies” Journal of International Business Studies, 19(1): 33-46.
  • Uçan, O. ve Öztürk, Ö. (2011) “Financial Determi- nants of Investment for Turkey”, Journal of Economic and Social Studies 1(1): 83-110.
  • Veeramacheneni, B., Vogel, R. ve Ekanayake, E.M. (2008) “Information Technology, FDI and Economic Growth: An India Case Study” Southwestern Economic Review, 35(1): 95-112.
  • Wai, T. U. ve Wong, C. H. (1982) “Determinants of Private Investment in Developing Countries” Journal of Development Studies, 19 (1): 19-36.
  • Westerlund, J. ve Edgerton, D. L. (2007) “A Panel Bootstrap Cointegration Test” Economics Letters, 97(3): 185–190.
There are 37 citations in total.

Details

Other ID JA28MK44AN
Journal Section Research Article
Authors

Cengiz Aytun

Cemil Serhat Akın This is me

Okyay Uçan

Publication Date May 1, 2015
Published in Issue Year 2015 Volume: 15 Issue: 2

Cite

APA Aytun, C., Akın, C. S., & Uçan, O. (2015). Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries. Ege Academic Review, 15(2), 207-216.
AMA Aytun C, Akın CS, Uçan O. Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries. ear. May 2015;15(2):207-216.
Chicago Aytun, Cengiz, Cemil Serhat Akın, and Okyay Uçan. “Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries”. Ege Academic Review 15, no. 2 (May 2015): 207-16.
EndNote Aytun C, Akın CS, Uçan O (May 1, 2015) Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries. Ege Academic Review 15 2 207–216.
IEEE C. Aytun, C. S. Akın, and O. Uçan, “Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries”, ear, vol. 15, no. 2, pp. 207–216, 2015.
ISNAD Aytun, Cengiz et al. “Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries”. Ege Academic Review 15/2 (May 2015), 207-216.
JAMA Aytun C, Akın CS, Uçan O. Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries. ear. 2015;15:207–216.
MLA Aytun, Cengiz et al. “Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries”. Ege Academic Review, vol. 15, no. 2, 2015, pp. 207-16.
Vancouver Aytun C, Akın CS, Uçan O. Relationship Between Telecommunication Investments and Foreign Direct Investments in Developing and Developed Countries. ear. 2015;15(2):207-16.