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Expanding Foreign Direct Investment in the Andean Countries

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  • Howard J. Shatz

Abstract

Developing country officials increasingly have come to see attracting foreign direct investment as an essential part of their development strategies. The Andean countries of Bolivia, Colombia, Ecuador, Peru, and Venezuela have joined other countries around the world in pursuing multinational investment. This paper presents an overview of their suitability for investment compared to other investment locations. It also describes policy areas where national governments of the five Andean countries can take action to attract the type of foreign direct investment that will increase living standards and help alleviate poverty. Export-oriented investment is identified as the key type of investment on which these countries should focus. Possible policy interventions include improving access to developed country markets, lowering trade costs, improving export processing zones, and investigating the further use of efficient investment incentives.

Suggested Citation

  • Howard J. Shatz, 2001. "Expanding Foreign Direct Investment in the Andean Countries," CID Working Papers 64A, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:64a
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    References listed on IDEAS

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    More about this item

    Keywords

    Andean countries; competitiveness; economic geography; economic reform; foreign direct investment;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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