Aid-financed infrastructure promotes foreign direct investments

Donaubauer, J., Meyer, B. & Nunnenkamp, P. (2016). Aid-financed infrastructure promotes foreign direct investments.
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The link between aid and private investment is not well understood. Could aid-financed infrastructure investments encourage higher foreign direct investment? The authors present the results of a new composite index of infrastructure to estimate direct and indirect impacts of aid for infrastructure on FDI.

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