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Japanese Direct Investment in Latin America in the Nineties

Author

Listed:
  • Eduardo Kiyoshi Tonooka

    (Research Institute for Economics & Business Administration (RIEB), Kobe Universty, Japan)

Abstract

This paper investigates the determinants of Japanese foreign direct investment (FDI) in Latin America. The analysis considers eleven countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela) and covers the 1980-1997 period. Empirical findings indicate that market size, bilateral commercial ties, and relative labour costs are important economic factors explaining the Japanese FDI in the region. Additionally, the relevance of institutional factors on FDI decisions is corroborated by some results concerning the legal structure of the investment host countries.

Suggested Citation

  • Eduardo Kiyoshi Tonooka, 2001. "Japanese Direct Investment in Latin America in the Nineties," Discussion Paper Series 118, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:118
    as

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    More about this item

    Keywords

    Foreign Investment; Market; Comparison;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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