IDEAS home Printed from https://ideas.repec.org/b/ecr/col007/1157.html

Foreign Investment in Latin America and the Caribbean 2000

Editor

Listed:
  • ECLAC

Author

Listed:
  • -

Abstract

This study seeks to provide greater insight into foreign direct investment (FDI) in Latin America and the Caribbean. A corporate strategy-based analytical framework has been used to interpret the copious yet heterogeneous information available on the subject. The research programme employed by the Unit on Investment and Corporate Strategies is structured around the examination of specific situations in selected investor countries, FDI host countries and FDI recipient industries in the region. This research, together with the statistical and qualitative data compiled by the Unit's Information Centre, has been used to provide an increasingly comprehensive picture of FDI in the region. In 2000, for the first time in nearly two decades, the Latin American and Caribbean region's FDI inflows dropped by 20% from the previous year's figure to stand at just US$ 74.191 billion. Nevertheless, caution should be exercised in analysing this turnaround in the trend, since the large inflows recorded for 1999 were the result of a limited number of major acquisitions of Latin American companies by foreign corporations which are unlikely to be repeated in the future. In addition, close to 60% of total foreign capital inflows were concentrated in just two countries: Brazil and Mexico. In fact, Brazil was the top choice of foreign investors for the fifth year running and accounted for 40% of total FDI inflows to the entire region. Moreover, in a continuation of the trend of earlier years, a very high percentage of FDI flows were used for the acquisition of existing assets, primarily in services sectors such as telecommunications, energy and finance. In addition to giving a broad-ranging and detailed review of FDI in Latin America and the Caribbean, this report presents a thorough analysis of Chile's position as a destination country (particularly in natural resource-based activities and, more recently, services); of Japan's role as a major international investor, but one which has few interests in the region; and of the telecommunications industry, one of the sectors that best reflects the astonishingly rapid changes associated with globalization. Each of these elements contributes to an increasingly thorough grasp of the nature and impact of FDI in the region as well as a fuller understanding of the phenomenon itself. Download presentations by chapters

Suggested Citation

  • -, 2001. "Foreign Investment in Latin America and the Caribbean 2000," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1157 edited by Eclac.
    • Handle: RePEc:ecr:col007:1157
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/1157
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. -, 2000. "Foreign Investment in Latin America and the Caribbean 1999," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1155 edited by Eclac.
    2. Kelichi Tsunekawa, 1995. "Japanese investment in liberalizing Latin American economies: current pattern and possible impacts of FTA initiatives," Brazilian Journal of Political Economy, Center of Political Economy, vol. 15(3), pages 397-417.
    3. Wallsten, Scott J., 1999. "An empirical analysis ofcompetition, privatization, and regulation in telecommunications markets in Africa and Latin America," Policy Research Working Paper Series 2136, The World Bank.
    4. Kelichi Tsunekawa, 1995. "Japanese investment in liberalizing Latin American economies: current pattern and possible impacts of FTA initiatives," Brazilian Journal of Political Economy, Center of Political Economy, vol. 15(3), pages 97-116.
    5. Kelichi Tsunekawa, 1995. "Japanese investment in liberalizing Latin American economies," Brazilian Journal of Political Economy, Center of Political Economy, vol. 15(3).
    6. Foders, Federico, 1996. "MERCOSUR: A new approach to regional integration?," Kiel Working Papers 746, Kiel Institute for the World Economy (IfW Kiel).
    7. Shin-ya Nakamura & Tsuyoshi Oyama, 1998. "The Determinants of Foreign Direct Investment from Japan and the United States to East Asian Countries, and the Linkage between FDI and Trade," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    8. -, 1995. "Foreign direct investment in the Caribbean," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27404, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. -, 2000. "Preliminary Overview of the Economies of Latin America and the Caribbean 2000," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 952 edited by Eclac.
    10. Langhammer, Rolf J. & Schweickert, Rainer, 1995. "The Mexican reform process: improving long-run perspectives and mastering short-run turbulences," Kiel Discussion Papers 255, Kiel Institute for the World Economy (IfW Kiel).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O'Donovan, David & Rios-Morales, Ruth, 2006. "Can the Latin American and Caribbean countries emulate the Irish model on FDI attraction?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Germano Mendes Paula & João Carlos Ferraz & Mariana Iootty, 2002. "Economic Liberalization And Changes In Corporate Control In Latin America," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 467-496, December.
    3. Gary A. Dymski, 2002. "The Global Bank Merger Wave: Implications For Developing Countries," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 435-466, December.
    4. Miguel D. Ramirez, 2006. "Economic And Institutional Determinants Of Foreign Direct Investment In Chile: A Time‐Series Analysis, 1960–2001," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 459-471, July.
    5. Paula, Luiz Fernando Rodrigues de, 2003. "The determinants of recent foreign bank penetration in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    6. Moguillansky, Graciela, 2003. "Corporate risk management and exchange rate volatility in Latin America," Series Históricas 7800, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Ffrench-Davis, Ricardo, 2002. "The impact of exports on growth in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    8. Mortimore, Michael & Peres Núñez, Wilson, 2001. "Corporate competitiveness in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    9. Graciela Moguillansky, 2002. "Non-Financial Corporate Risk Management and Exchange Rate Volatility in Latin America," WIDER Working Paper Series DP2002-30, World Institute for Development Economic Research (UNU-WIDER).
    10. -, 2004. "Foreign Investment in Latin America and the Caribbean 2003," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1127 edited by Eclac.
    11. Amann, Edmund & de Paula, Germano Mendes & Ferraz, Joao Carlos, 2002. "UK Corporate Acquisitions in Latin America in the 1990s: Lost Opportunities in a New Economic Environment?," Centre on Regulation and Competition (CRC) Working papers 30613, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Gary Dymski, 2011. "The International Debt Crisis," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Second Edition, chapter 6, Edward Elgar Publishing.
    13. Moguillansky, Graciela, 2002. "Investment and financial volatility in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    14. Ramírez Jaramillo, Juan Carlos & Silva Lira, Iván, 2008. "Globalization and regional development: the economic performance of Chile's regions, 1990-2002," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    15. -, 2002. "Growth with stability: financing for development in the new international context," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2319 edited by Eclac.
    16. -, 2001. "CEPAL Review no.74," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    17. João Carlos Ferraz & Nobuaki Hamaguchi, 2002. "Introduction: M&A And Privatization In Developing Countries," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 383-399, December.
    18. -, 2003. "CEPAL Review no.79," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Dirk Willem te Velde, 2003. "Foreign Direct Investment and Income Inequality in Latin America," Documentos de trabajo 4/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miguel D. Ramirez, 2006. "Economic And Institutional Determinants Of Foreign Direct Investment In Chile: A Time‐Series Analysis, 1960–2001," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 459-471, July.
    2. Walker, M. Mark & Hatfield, Gay B., 1996. "Professional stock analysts' recommendations: Implications for individual investors," Financial Services Review, Elsevier, vol. 5(1), pages 13-29.
    3. Mesa-Lago, Carmelo, 2005. "Social and economic problems in Cuba during the crisis and subsequent recovery," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    4. -, 2001. "Trade and investment flows between the Caribbean and the rest of the hemisphere in the context of the FTAA," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27489, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank.
    6. Nunnenkamp, Peter, 1997. "Herausforderungen der Globalisierung für Brasilien," Open Access Publications from Kiel Institute for the World Economy 1705, Kiel Institute for the World Economy (IfW Kiel).
    7. Calderón Hoffmann, Alvaro & Casilda Béjar, Ramón, 2000. "The Spanish banks' strategies in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    8. Mitze, Timo & Alecke, Björn & Untiedt, Gerhard, 2009. "Trade-FDI Linkages in a System of Gravity Equations for German Regional Data," Ruhr Economic Papers 84, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Pradip K. Bhaumik & Arindam Banik, 2006. "FDI, Skilled Labour and the Caribbean's Emerging Competitive Disadvantage," Global Business Review, International Management Institute, vol. 7(2), pages 175-193, August.
    10. Unbreen Qayyum & Zafar Mahmood, 2013. "Inter-linkage between Foreign Direct Investment and Foreign Trade in Pakistan: Are they Complements or Substitute?," PIDE-Working Papers 2013:91, Pakistan Institute of Development Economics.
    11. Çaglar Özden & Francisco J. Parodi, 2004. "Customs Unions And Foreign Investment: Theory And Evidence From Mercosur’s Auto Industry," Working Papers Central Bank of Chile 282, Central Bank of Chile.
    12. Carmelo Mesa-Lago, 2007. "The Cuban Economy in 2006-2007," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 17.
    13. Yi-Cheng Liu & Wen Yang & Hsu, Wen-Jen, 2020. "What do we know about Korean Outward Foreign Direct Investment? Applying Spatial Models," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(3), pages 204-217, September.
    14. Nunnenkamp, Peter, 1998. "Lateinamerika nach der verlorenen Dekade: Eine Zwischenbilanz der Reformen," Kiel Discussion Papers 324, Kiel Institute for the World Economy (IfW Kiel).
    15. Farrell, Roger & Gaston, Noel & Sturm, Jan-Egbert, 2004. "Determinants of Japan's foreign direct investment: An industry and country panel study, 1984-1998," Journal of the Japanese and International Economies, Elsevier, vol. 18(2), pages 161-182, June.
    16. -, 2003. "CEPAL Review no.79," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    17. Nunnenkamp, Peter, 1997. "Mercosur und EU: institutionalisierte Kooperation als Stimulanz für Handel und Direktinvestitionen?," Open Access Publications from Kiel Institute for the World Economy 1737, Kiel Institute for the World Economy (IfW Kiel).
    18. Archibald R. M. Ritter, 2003. "An Overview of Cuba’s Economy in the 2000s: Recuperation and/or Relapse – revised version: The Cuban Economy in the Twenty-first Century: Recuperation or Relapse? The Cuban Economy," Carleton Economic Papers 03-03, Carleton University, Department of Economics, revised 2004.
    19. Nunnenkamp, Peter, 1998. "Boom and bust in capital flows to developing countries: what South Asia can learn from recent financial crises," Kiel Working Papers 853, Kiel Institute for the World Economy (IfW Kiel).
    20. Kuwayama, Mikio, 2001. "E-commerce and export promotion policies for small- and medium-sized enterprises: East Asian and Latin American experiences," Comercio Internacional 4351, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col007:1157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.