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Policy Competition for Foreign Direct Investment

In: Trade Negotiations in Latin America

Author

Listed:
  • Daniel Chudnovsky
  • Andres Lopez

Abstract

Fierce competition has arisen among developing as well as developed countries to attract increasing volumes of foreign direct investment (FDI). This new attitude in developing countries is part of the broad change towards market-friendly policies, as barriers and regulations are dismantled and intense competition for FDI is taking place at national as well as sub-national levels. This chapter addresses the global and regional dimensions of such competition. Section 7.1 addresses the main issues regarding policy competition for FDI. Section 7.2 describes the logic of the competition and the existing empirical evidence on its effects. Section 7.3 deals with the existing multilateral disciplines on investments. Section 7.4 considers the regional dimension of FDI policy competition, analyzing the cases of the European Union and Mercosur. Section 7.5 presents concluding remarks.

Suggested Citation

  • Daniel Chudnovsky & Andres Lopez, 2003. "Policy Competition for Foreign Direct Investment," Palgrave Macmillan Books, in: Diana Tussie (ed.), Trade Negotiations in Latin America, chapter 7, pages 135-154, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-1858-1_8
    DOI: 10.1057/9781403918581_8
    as

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