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Does China have an impact on foreign direct investment to Latin America?

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Author Info

  • Daniel Santabarbara

    (Bank of Spain)

  • Alicia Garcia-Herrero

    (Bank of Spain)

Abstract

We analyze empirically whether the emergence of China as a large recipient of FDI has affected the amount of FDI received by Latin American countries. For the longest time span possible given data availability (from 1984 to 2001), we do not find a substitution from Latin American inward FDI to China, when other relevant factors are taken into account. However, concentrating on the last few years (from 1995 to 2001), when FDI boomed worldwide and negotiations for China’s WTO membership accelerated, the “Chinese” effect becomes highly significant. Assessing the impact country by country, China’s inward FDI appears to have hampered that of Mexico and Colombia.

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File URL: http://128.118.178.162/eps/if/papers/0508/0508008.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Finance with number 0508008.

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Length: 25 pages
Date of creation: 22 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwpif:0508008

Note: Type of Document - pdf; pages: 25
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Web page: http://128.118.178.162

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Keywords: China; Latin America; FDI;

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References

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Citations

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Cited by:
  1. Avendano, Rolando & Alonso Arroba, Angel & Estrada, Arturo, 2009. "Adapting to the Rise of China: How can Latin American Companies Succeed?," MPRA Paper 25948, University Library of Munich, Germany.
  2. Álvarez, L. & Dhyne, E. & Hoeberichts, M. & Kwapil, C. & Le Bihan, H. & Lünnemann, P. & Martins, F. & Sabbatini, R. & Stahl,H. & Vermeulen, P. & Vilmunen, J., 2005. "Sticky Prices in the Euro Area: A Summary of New Micro Evidence," Working papers 138, Banque de France.
  3. Robert A Buckle & Amy A Cruickshank, 2007. "The Challenge of Structural Change in APEC Economies," Treasury Working Paper Series 07/06, New Zealand Treasury.
  4. 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.
  5. Aleksynska, Mariya & Havrylchyk, Olena, 2013. "FDI from the south: The role of institutional distance and natural resources," European Journal of Political Economy, Elsevier, vol. 29(C), pages 38-53.
  6. Eduardo Lora, 2005. "¿Debe América Latina temerle a la China?," Research Department Publications 4420, Inter-American Development Bank, Research Department.
  7. Yuqing Xing, 2008. "FDI in China: Facts and Impacts on China and the World Economy," Working Papers EMS_2008_03, Research Institute, International University of Japan.
  8. Hung, Chih-Young & Chiang, Yi-Hui, 2009. "Does an upper limit on foreign direct investment matter?: The case of Taiwan," Journal of Asian Economics, Elsevier, vol. 20(5), pages 549-560, September.
  9. Eduardo Lora, 2005. "Should Latin America Fear China?," Research Department Publications 4419, Inter-American Development Bank, Research Department.
  10. Bassem Kahouli & Anis Omri & Anissa Chaibi, 2014. "Environmental Regulations, Trade, and Foreign Direct Investment: Evidence from Gravity Equations," Working Papers 2014-189, Department of Research, Ipag Business School.

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