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The determinants of foreign direct investment in Brazil: empirical analysis for 2001-2013

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  • Triches, Divanildo
  • Correa da Silveira, Eduarda Martins
  • Dias Samsonescu, Jorge Augusto

Abstract

This article aims to analyse the determinants of foreign direct investment (FDI) into Brazil between 2001 and 2013. It uses a vector error correction (VEC) model to analyse both the long-term function and the impulse-response function. The results show that levels of economic activity, wages and productivity are positively related to FDI inflows, which means that investors pursue market-seeking and efficiency-seeking strategies when targeting the Brazilian market. Although less important, the stability of the national economy and the exchange rate also proved statistically significant in explaining FDI inflows.

Suggested Citation

  • Triches, Divanildo & Correa da Silveira, Eduarda Martins & Dias Samsonescu, Jorge Augusto, 2017. "The determinants of foreign direct investment in Brazil: empirical analysis for 2001-2013," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:42016
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    References listed on IDEAS

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    6. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    7. Pesaran, H. Hashem & Shin, Yongcheol, 1998. "Generalized impulse response analysis in linear multivariate models," Economics Letters, Elsevier, vol. 58(1), pages 17-29, January.
    8. Imad A. Moosa, 2002. "Foreign Direct Investment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-0749-3, October.
    9. Regis Bonelli, 1999. "A note on foreign direct investment and industrial competitiveness in Brazil," Oxford Development Studies, Taylor & Francis Journals, vol. 27(3), pages 305-327.
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    Cited by:

    1. Mohammad Shaiful Islam & Ahmed Beloucif, 2024. "Determinants of Foreign Direct Investment: A Systematic Review of the Empirical Studies," Foreign Trade Review, , vol. 59(2), pages 309-337, May.

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