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An Evaluation of Promotional Policies for Foreign Direct Investment in Latin America

  • Mauricio López González


  • Lorena Morales


  • Oriana Guerrero


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    In the past two decades, Foreign Direct Investment (FDI) has gained importance in Latin American economies. This is because, as this article intends to demonstrate, increasingly sounder macro-economic stability and the fact that the region's countries have opened and flexibilized their regulatory frameworks. In this manner, and through a model of data from panels, this article finds that the measures implemented in Latin America to attract FDI have enabled a larger inflow of resources. On another front, the model also ascertains the importance of other factors such as macroeconomic stability and the size of the market, which also explain a good percentage of these flows.

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    Article provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.

    Volume (Year): (2009)
    Issue (Month): 71 ()
    Pages: 141-168

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    Handle: RePEc:lde:journl:y:2009:i:71:p:141-168
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