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The FTAA And The Location Of FDI

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  • Eduardo Levy Yeyati
  • Ernesto Stein
  • Christian Daude

Abstract

The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a number of highly relevant questions: For instance, what effect will the FTAA have on FDI from the US and Canada to Latin American countries? How will it affect FDI from the rest of the world? What are the implications for a country such as Mexico, whose preferential access to the US may be diluted? Should we expect to see winners and losers, and if so, what determines whether a particular country wins or loses? To address these questions, in this paper we look at the impact of regional integration on FDI, and attempt to derive conclusions regarding the likely impact of the FTAA on countries in Latin America

Suggested Citation

  • Eduardo Levy Yeyati & Ernesto Stein & Christian Daude, 2004. "The FTAA And The Location Of FDI," Working Papers Central Bank of Chile 281, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:281
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    Cited by:

    1. Philippa Dee, 2006. "Multinational Corporations and Pacific Regionalism," Asia Pacific Economic Papers 358, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    2. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2008. "Estimating regional trade agreement effects on FDI in an interdependent world," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 194-208, July.
    3. Fuentes, Miguel & Saravia, Diego, 2010. "Sovereign defaulters: Do international capital markets punish them?," Journal of Development Economics, Elsevier, vol. 91(2), pages 336-347, March.
    4. Rodrigo Sabbatini & André Luiz Correa & Celio Hiratuka, 2005. "Investimento Direto Estrangeiro E Impactos Da Alca: Uma Análise Empírica," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 075, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. José Luis Machinea, 2003. "The Impact of Western Hemisphere Free Trade Agreements on the Foreign Sector and Debt Sustainability," IDB Publications (Working Papers) 4280, Inter-American Development Bank.
    6. José De Sousa & Julie Lochard, 2004. "Investissements directs étrangers et intégration : quels enseignements pour les Peco ?," Economie & Prévision, La Documentation Française, pages 87-100.

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