This paper applies the panel data model for estimation of the parameters for southern Asia countries. Before proceeding to estimate panel data, we carry out unit root tests to examine whether the variables are stationary. The data set used covers southern Asia countries over the period 1980-2009. In this paper we conclude that urban infrastructure has a positive effect on FDI and the governments in this zone should pay attention in this variable for FDI attracting.
ISSN: 1792-7552 (Online)