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Foreign Investment in Latin America and the Caribbean 2003

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Abstract

In 2003, flows of foreign direct investment (FDI) to Latin America and the Caribbean continued to shrink for the fourth year running. With this latest decline, Latin America and the Caribbean turned in the worst performance of any world region. This situation was exacerbated by the steady increase in profit remittances and in outflows of other FDI-related resources, which has diminished its impact on the balance of payments. The decrease in FDI inflows over the past few years has varied across subregions and countries in Latin America and the Caribbean, however. In Mexico and the Caribbean basin, inflows have diminished less, while South America has been more strongly affected. Within South America, inflows were quite stable in the Andean Community but were down sharply in MERCOSUR and particularly so in Brazil. This publication devotes special attention to the strategies employed by transnational corporations seeking to heighten their efficiency with a view to moving into new markets. Accordingly, one chapter is devoted to an examination of FDI trends in Latin America and the Caribbean, while the other two deal with different aspects of this kind of corporate strategy. One analyses events in Costa Rica, the Dominican Republic, Honduras and Jamaica, which are regarded as cost centres for labour-intensive activities producing low value-added goods, while the other looks at the challenges facing the Brazilian and Mexican automotive industry production chain with regard to upgrading to manufacturing centres.

Suggested Citation

  • -, 2004. "Foreign Investment in Latin America and the Caribbean 2003," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1127 edited by Eclac, May.
    • Handle: RePEc:ecr:col007:1127
    Note: Includes bibliography
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    File URL: http://repositorio.cepal.org/handle/11362/1127
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    Citations

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    Cited by:

    1. O'Donovan, David & Rios-Morales, Ruth, 2006. "Can the Latin American and Caribbean countries emulate the Irish model on FDI attraction?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. METAXAS, Theodore & TSAVDARIDOU, Maria, 2011. "Shaping The Image Of Bulgaria As Fdi Destination In Southeastern Europe: The Course After 1989," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
    3. -, 2009. "Foreign Direct Investment in Latin America and the Caribbean 2008," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1139 edited by Eclac, May.
    4. -, 2010. "Foreign Direct Investment in Latin America and the Caribbean 2009," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37607 edited by Eclac, May.
    5. -, 2016. "Foreign Direct Investment in Latin America and the Caribbean 2016," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40214 edited by Eclac, May.
    6. Argelia Munoz Pahuamba & Ye Jianmu & Abdoulaye Oury Bah, 2015. "Latin America Development under Chinese Investment Hegemony," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(5), pages 38-50, April.
    7. Galaso Reca, Pablo & García de la Cruz, José Manuel & Sánchez Díez, Angeles, 2016. "Mergers and acquisitions carried out by Spanish firms in Latin America: a network analysis study," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

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