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A cluster analysis of FDI in Latin America

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  • Rosa Forte
  • Nancy Santos

Abstract

This study contributes to the literature on FDI in Latin America using cluster analysis, a technique rarely employed in studies on this topic, to examine the FDI performance of Latin American countries. The empirical findings reveal three clusters in 2011, compared to just two in 2005. The cluster with better FDI performance (Chile, Panama, Uruguay, and Costa Rica) also performs better in terms of variables such as market size, trade openness, and human capital. Between 2005 and 2011 Argentina left the best-performing cluster and the cluster with poorer performance split into two, indicating heterogeneous evolution of economies in the region.

Suggested Citation

  • Rosa Forte & Nancy Santos, 2015. "A cluster analysis of FDI in Latin America," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 52(1), pages 25-56, May.
    • Handle: RePEc:ioe:cuadec:v:52:y:2015:i:1:p:25-56
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    3. Cosmin MATIŞ & Maria Camelia Ilisan ISMANA & Adrian Ciprian GHINEA & Georgeta Beatrice PETRACHE LANG, 2018. "Measuring the Convergence between Management and Leadership in the Banking System by Applying a Cluster Analysis," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(2), pages 213-228, May.
    4. Biyase Mduduzi & Rooderick September, 2018. "Determinants of FDI in BRICS Countries: Panel Data Approach," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(2), pages 35-48, August.
    5. Mirela Catalina Türkes, 2017. "Cluster Analysis of Total Assets Provided By Banks from Four Continents," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(4), pages 24-28, December.
    6. Mirela Catalina Turkes, 2017. "Cluster Analysis Of Total Assets Provided By Banks From Four Continents," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 54-58, August.
    7. Luis Miguel Bolívar Caro & Gabriel Orlando Rodríguez Puello & Daniel Alfonso Forero vargas, 2016. "La inversión extranjera directa y su desempeno en Colombia, 1994 - 2014," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 10(2), pages 241-278, December.

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    More about this item

    Keywords

    Foreign direct investment (FDI); Latin America; cluster analysis;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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