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 assessment 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8950.
Date of creation: 01 Feb 2008
Date of revision:
FDI; Latin America; China; US; Cointegration;
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," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-22, June.
- 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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