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An Evaluation of Promotional Policies for Foreign Direct Investment in Latin America

Author

Listed:
  • Mauricio López González
  • Lorena Morales
  • Oriana Guerrero

Abstract

In the past two decades, Foreign Direct Investment (FDI) has gained importance in Latin American economies. This is because, as this article intends to demonstrate, increasingly sounder macro-economic stability and the fact that the region's countries have opened and flexibilized their regulatory frameworks. In this manner, and through a model of data from panels, this article finds that the measures implemented in Latin America to attract FDI have enabled a larger inflow of resources. On another front, the model also ascertains the importance of other factors such as macroeconomic stability and the size of the market, which also explain a good percentage of these flows.

Suggested Citation

  • Mauricio López González & Lorena Morales & Oriana Guerrero, 2009. "An Evaluation of Promotional Policies for Foreign Direct Investment in Latin America," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 71, pages 141-168.
    • Handle: RePEc:lde:journl:y:2009:i:71:p:141-168
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    More about this item

    Keywords

    Foreign Direct Investment; Macro-economic Stability; Regulatory Frameworks; Promotional Policies.;
    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
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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