Infrastructure, International Relations, and Foreign Direct Investment: The Case of the Belt and Road Initiative and US-China Tensions
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2024-07-04
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en
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This thesis examines the impact of participation in the Belt and Road Initiative (BRI) on inward foreign direct investment (FDI) and the mediating role of a country’s relations with the United States. Using a sample of 159 countries from 2007 to 2022, this study conducts two difference-in-difference analyses and a regression analysis.
The findings reveal no significant effect of participation in the BRI on inward FDI, challenging the assumption that international infrastructure makes a country more attractive for foreign investors. Furthermore, this study finds no support for a mediation effect by a country’s relations with the United States.
These findings contribute to the FDI literature by suggesting a more complex nature of the relations between infrastructure, international relations, and FDI flows than previously theorized. It provides valuable insights for policymakers and sets the stage for future research on FDI flows and their determinants.
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Faculteit der Managementwetenschappen