- Figures (and map)
- Shifting Paradigms in Latin America's Economic Development
- Institutions and the Historical Roots of Latin American Divergence
- Political Institutions, Policymaking, and Economic Policy in Latin America
- The Washington Consensus: Assessing A “damaged Brand”
- From Old to New Developmentalism in Latin America
- Environmental Sustainability
- Taming Capital Account Shocks: Managing Booms and Busts
- Exchange Rate Regimes in Latin America
- Monetary Policy in Latin America: Performance Under Crisis and the Challenges of Exuberance
- Domestic Financial Development in Latin America
- Fiscal Policy in Latin America
- Fiscal Legitimacy, Inequalities, and Democratic Consolidation in Latin America
- Latin America in the World Trade System
- Regional Integration
- The Effects of Trade Liberalization on Growth, Employment, and Wages
- The Recent Commodity Price Boom and Latin American Growth: More than New Bottles for an Old Wine?
- Curse or Blessing? Natural Resources and Human Development
- Foreign Direct Investment in Latin America
- China and the Future of Latin American Economic Development
- Latin America in the Recent Wave of International Migration
- Structural Transformation and Economic Growth in Latin America
- Learning, Technological Capabilities, and Structural Dynamics
- Why Has Productivity Growth Stagnated in Most Latin American Countries Since the Neo-Liberal Reforms?
- Agricultural and Rural Development
- An Energy Panorama of Latin America
- Infrastructure in Latin America
- The Rise and Fall of Income Inequality in Latin America
- Multidimensional Poverty in Latin America: Concept, Measurement, and Policy
- Economic Insecurity and Development in Latin America and the Caribbean
- Employment: The Dominance of the Informal Economy
- Latin American Labor Reforms: Evaluating Risk and Security
- Social Protection in Latin America: Achievements and Limitations
- Social Security Reforms in Latin America
Abstract and Keywords
Historically, foreign direct investment (FDI) has had an ambivalent role in terms of its contribution to development, especially how it shaped the productive sector in Latin America, such that it became a recurrent theme in the region's economic literature. FDI flows to Latin America have soared since the 1990s, converting it into an even more important variable. More recently, there has been a smaller but equally unprecedented rise in outward direct investment by Latin American foreign investors. This creates new policy challenges for productive development in the region. This chapter provides an overview of inward and outward FDI patterns in Latin America since the mid-1990s. The second section looks at inward FDI and the third section deals with outward FDI over this period. The fourth section briefly summarizes the main findings and contemplates policy challenges.
João Carlos Ferraz, Director of Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Brasilia.
Michael Mortimore is Former Head of the Unit on Investment and Corporate Strategies at the Economic Commission for Latin America and the Caribbean (ECLAC), Santiago.
Márcia Tavares is Economic Affairs Officer of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Santiago.
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