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FDI for forestry: an impact evaluation of regional development

Author

Listed:
  • Martín Pereyra

    (CINVE—Centro de Investigaciones Económicas
    Universidad ORT Uruguay)

  • Cecilia Alonso

    (CINVE—Centro de Investigaciones Económicas
    Universidad ORT Uruguay)

Abstract

We evaluate the impact of foreign direct investment (FDI) in the forestry sector on regional economic development. We study the effects of the construction and operation of a paper mill on development in the department of Río Negro, Uruguay. This paper contributes to the literature on impact evaluations of FDI in the forestry industry in developing countries at the regional level. Applying synthetic control methods, we find positive and statistically significant effects of the investment project on per capita departmental gross value added (GVA), and on main occupation income of the inhabitants of Río Negro.

Suggested Citation

  • Martín Pereyra & Cecilia Alonso, 2024. "FDI for forestry: an impact evaluation of regional development," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 44(1), pages 1-20, March.
    • Handle: RePEc:spr:jahrfr:v:44:y:2024:i:1:d:10.1007_s10037-023-00196-3
    DOI: 10.1007/s10037-023-00196-3
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