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Foreign Investment in Latin America and the Caribbean 2000

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Abstract

This study seeks to provide greater insight into foreign direct investment (FDI) in Latin America and the Caribbean. A corporate strategy-based analytical framework has been used to interpret the copious yet heterogeneous information available on the subject. The research programme employed by the Unit on Investment and Corporate Strategies is structured around the examination of specific situations in selected investor countries, FDI host countries and FDI recipient industries in the region. This research, together with the statistical and qualitative data compiled by the Unit's Information Centre, has been used to provide an increasingly comprehensive picture of FDI in the region. In 2000, for the first time in nearly two decades, the Latin American and Caribbean region's FDI inflows dropped by 20% from the previous year's figure to stand at just US$ 74.191 billion. Nevertheless, caution should be exercised in analysing this turnaround in the trend, since the large inflows recorded for 1999 were the result of a limited number of major acquisitions of Latin American companies by foreign corporations which are unlikely to be repeated in the future. In addition, close to 60% of total foreign capital inflows were concentrated in just two countries: Brazil and Mexico. In fact, Brazil was the top choice of foreign investors for the fifth year running and accounted for 40% of total FDI inflows to the entire region. Moreover, in a continuation of the trend of earlier years, a very high percentage of FDI flows were used for the acquisition of existing assets, primarily in services sectors such as telecommunications, energy and finance. In addition to giving a broad-ranging and detailed review of FDI in Latin America and the Caribbean, this report presents a thorough analysis of Chile's position as a destination country (particularly in natural resource-based activities and, more recently, services); of Japan's role as a major international investor, but one which has few interests in the region; and of the telecommunications industry, one of the sectors that best reflects the astonishingly rapid changes associated with globalization. Each of these elements contributes to an increasingly thorough grasp of the nature and impact of FDI in the region as well as a fuller understanding of the phenomenon itself. Download presentations by chapters

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  • -, 2001. "Foreign Investment in Latin America and the Caribbean 2000," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1157 edited by Eclac, September.
    • Handle: RePEc:ecr:col007:1157
    Note: Includes bibliography
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    1. O'Donovan, David & Rios-Morales, Ruth, 2006. "Can the Latin American and Caribbean countries emulate the Irish model on FDI attraction?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Moguillansky, Graciela, 2003. "Corporate risk management and exchange rate volatility in Latin America," Series Históricas 7800, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Graciela Moguillansky, 2002. "Non-Financial Corporate Risk Management and Exchange Rate Volatility in Latin America," WIDER Working Paper Series DP2002-30, World Institute for Development Economic Research (UNU-WIDER).
    4. Gary Dymski, 2011. "The International Debt Crisis," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Second Edition, chapter 6, Edward Elgar Publishing.
    5. -, 2002. "Growth with stability: financing for development in the new international context," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2319 edited by Eclac.
    6. Germano Mendes Paula & João Carlos Ferraz & Mariana Iootty, 2002. "Economic Liberalization And Changes In Corporate Control In Latin America," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 467-496, December.
    7. Gary A. Dymski, 2002. "The Global Bank Merger Wave: Implications For Developing Countries," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 435-466, December.
    8. Miguel D. Ramirez, 2006. "Economic And Institutional Determinants Of Foreign Direct Investment In Chile: A Time‐Series Analysis, 1960–2001," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 459-471, July.
    9. Paula, Luiz Fernando Rodrigues de, 2003. "The determinants of recent foreign bank penetration in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    10. Ffrench-Davis, Ricardo, 2002. "The impact of exports on growth in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Mortimore, Michael & Peres Núñez, Wilson, 2001. "Corporate competitiveness in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    12. -, 2004. "Foreign Investment in Latin America and the Caribbean 2003," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1127 edited by Eclac, September.
    13. Amann, Edmund & de Paula, Germano Mendes & Ferraz, Joao Carlos, 2002. "UK Corporate Acquisitions in Latin America in the 1990s: Lost Opportunities in a New Economic Environment?," Centre on Regulation and Competition (CRC) Working papers 30613, University of Manchester, Institute for Development Policy and Management (IDPM).
    14. Moguillansky, Graciela, 2002. "Investment and financial volatility in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    15. Ramírez Jaramillo, Juan Carlos & Silva Lira, Iván, 2008. "Globalization and regional development: the economic performance of Chile's regions, 1990-2002," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    16. -, 2001. "CEPAL Review no.74," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    17. João Carlos Ferraz & Nobuaki Hamaguchi, 2002. "Introduction: M&A And Privatization In Developing Countries," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 383-399, December.
    18. -, 2003. "CEPAL Review no.79," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Willem te Velde, Dirk, 2003. "Foreign Direct Investment and Income Inequality in Latin America," Documentos de trabajo 4/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.

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