Foreign Investment in Latin America and the Caribbean 1999

This study attempts to contribute to a better understanding of foreign direct investment (FDI) in Latin America and the Caribbean by examining the plentiful but disparate statistical information available on the subject within the context of a conceptual framework based on an analysis of corporate strategies. The research programme of the Unit on Investment and Corporate Strategies is structured around the analysis of the specific situations of individual investor countries and of FDI recipient countries and destination industries in the region. This research, combined with the statistical information compiled by the Unit's Information Centre, provides a more complete picture of this subject matter. In 1998, FDI inflows amounted to US$ 76.7 billion and thus surpassed the record level recorded in 1997; by the same token, 1999 inflows will be larger than those of 1998. FDI is a major economic variable in the performance of the Latin America and Caribbean economies and therefore needs to be understood more fully. Over 40% of the region's total inflows go to Brazil, where the liberalization and deregulation of financial services and the privatization of State assets in the telecommunications and electricity generation and distribution industries have opened up enormous opportunities for foreign investors interested in purchasing existing assets. In contrast, the creation of new assets has been a more prominent feature of investment activity in Mexico. In addition to detailed, up-to-date statistical information, the report provides a comprehensive analysis of Mexico's position as a recipient country, of Spain's status as a major new investor and of the apparel industry, where FDI has generated substantial export flows to the North American market. Each of these analyses affords valuable insight into the nature and impact of FDI in the region and contributes to a fuller understanding of this phenomenon. Please follow the links below to download presentations made to press conference held in Mexico City, 18 January 2000: