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The Spatial Interdependence of FDI in Latin America

  • Blanco, Luisa R.
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    Using a sample of 17 Latin American countries, with observations during 1986–2006, two forms of spatial interdependence of foreign direct investment (FDI) are explored: (1) surrounding market potential, and (2) spatial autocorrelation. We find that surrounding market potential has a positive significant effect on net FDI, but there is no evidence that FDI is spatially autocorrelated. Other factors that show a significant positive effect on FDI include control of corruption and exports of raw materials. When considering only FDI inflows from the US, we find that FDI is spatially autocorrelated, and that surrounding market potential is not significant.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X12000289
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 40 (2012)
    Issue (Month): 7 ()
    Pages: 1337-1351

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    Handle: RePEc:eee:wdevel:v:40:y:2012:i:7:p:1337-1351
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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