Logistics influence on FDI: 'hard' versus 'soft' infrastructure components

Abstract

The goal is to consider the potential of logistics in attracting FDI and to examine the degree of influence of selected LPI and GCI components related to the quality of the logistics system on FDI inflow in the EU-28. The panel data regression was employed covering the period of 2007 to 2018 (the newest data is available from 2018). The article results point to the importance of logistics as a factor of FDI inflows, with the special importance of physical infrastructure, ports, and international shipments as a segment of logistics services. The results also indicate effects in individual countries and years. Research results can serve policymakers as an instrument to improve the investment environment. Also, decision-makers can gain insight into the key factors of logistics performance that have an impact on investment decisions in the EU.