We raise the hypothesis that aid specifically targeted at economic infrastructure helps developing countries attract … higher FDI inflows through improving their endowment with infrastructure in transportation, communication, energy and finance … allocation of sector-specific aid, the determinants of infrastructure, and the determinants of FDI. We find fairly strong and …

. Infrastructure provision is seen as a particularly important instrument for helping in regional development where government can play … a significant role due to the public goods nature of infrastructure facilities. Literature confirms the positive … association between infrastructure and growth. However, it is not necessary that economic growth attributable to infrastructure …