Investment climate and foreign direct investment in Latin American countries: firm-level evidence

Authors

DOI:

https://doi.org/10.52292/j.estudecon.2022.2809

Keywords:

Developing countries, FDI, Export, Foreign investments

Abstract

This paper analyzed the relationship between the investment climate and foreign direct investment (FDI) using a sample of 18 Latin American countries. The main results show that obstacles related to financial infrastructure and customs clearance might reduce the probability of a country receiving FDI, while physical infras-tructure obstacles do not significantly affect the influx of FDI. The disaggregated data show that financial infrastructure is important for attracting both vertical and horizontal FDI. On average, policies in Latin America that minimize financial obs-tacles and reduce the time it takes to clear customs will increase the likelihood of attracting FDI.Keywords: developing countries; FDI; export.JEL code: F21; F23      

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Published

2022-06-25

How to Cite

Fraga, G. J. (2022). Investment climate and foreign direct investment in Latin American countries: firm-level evidence. Estudios económicos, 39(79), 103–126. https://doi.org/10.52292/j.estudecon.2022.2809

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Vol. 39 No. 79 (2022)

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