A Survey on the Effect of Infrastructure Development on Foreign Direct Investment into Developing Countries

Abstract

This paper explains the effect of infrastructure development on the foreign direct investment into developing countries by manufacturing companies originating in advanced countries. In the case of Cambodia, it turns out that 1) preparation of Special Economic Zones, 2) improvement of Routes 4 and 5, major national roads connecting Phnom Penh to Sihanoukville Port and to the northeastern part of Thailand, respectively, and 3) development of boarder areas adjacent to Thailand and Viet Nam are key factors.