Competition between Latin America and China for US Direct Investment
AbstractThere is a belief that the Chinese economy competes with the Latin-American ones for investment flows. Here we analyze the determinants of the US FDI outflows to the most representative Latin-American economies. We develop such assessments with a double-procedure cointegration analysis based on the time-series methodologies of Toda and Yamamoto (1995) and Liu, Song and Romilly (1997). The results suggest that long-run investment to the Latin-American region mainly depends on the performance of the US economy. Furthermore, they suggest the existence of a substitution effect between the Latin American countries and China for US investment flows.
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Bibliographic InfoArticle provided by De Gruyter in its journal Global Economy Journal.
Volume (Year): 8 (2008)
Issue (Month): 2 (June)
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Other versions of this item:
- De la Cruz Gallegos, Jose Luis & Ivanova Boncheva, Antonina & Ruiz-Porras, Antonio, 2008. "Competition between Latin America and China for US direct investment," MPRA Paper 8950, University Library of Munich, Germany.
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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