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The FTAA and the Location of FDI

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  • Eduardo Levy Yeyati
  • Ernesto H. Stein
  • Christian Daude

Abstract

The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a number of highly relevant questions: For instance, what effect will the FTAA have on FDI from the US and Canada to Latin American countries? How will it affect FDI from the rest of the world? What are the implications for a country such as Mexico, whose preferential access to the US may be diluted? Should we expect to see winners and losers, and if so, what determines whether a particular country wins or loses? To address these questions, in this paper we look at the impact of regional integration on FDI, and attempt to derive conclusions regarding the likely impact of the FTAA on countries in Latin America.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4341.

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Date of creation: Jul 2003
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Handle: RePEc:idb:wpaper:4341

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Cited by:
  1. Miguel Fuentes & Diego Saravia, 2006. "Sovereign Defaulters: Do International Capital Markets Punish Them?," Documentos de Trabajo 314, Instituto de Economia. Pontificia Universidad Católica de Chile..
  2. Rodrigo Sabbatini & André Luiz Correa & Celio Hiratuka, 2005. "Investimento Direto Estrangeiro E Impactos Da Alca: Uma Análise Empírica," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 075, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  3. Philippa Dee, 2006. "Multinational Corporations and Pacific Regionalism," Trade Working Papers 21836, East Asian Bureau of Economic Research.
  4. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2007. "Estimating Regional Trade Agreement Effects on FDI in an Interdependent World," Center for Policy Research Working Papers 100, Center for Policy Research, Maxwell School, Syracuse University.
  5. Julie Lochard & José de Sousa, 2004. "Investissements directs étrangers et intégration : quels enseignements pour les Peco ?," Économie et Prévision, Programme National Persée, vol. 163(2), pages 87-100.

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