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date: 01 October 2020

Abstract and Keywords

This chapter analyzes the evolution of inward foreign direct investment (FDI) over the long term in Brazil. It identifies the key drivers of flows and provides a statistical summary of key trends. Importantly, the chapter highlights the role of inward flows in reinforcing the trend toward Brazil’s increased relative reliance on primary commodity production in the international division of labor. Much of the FDI arriving in Brazil has cleaved to the country’s natural comparative advantage in the primary sector, since the government has not directed investment to sectors with a higher technological level, and has been unable to provide more qualified labor, or an environment apt to attract investment to more dynamic sectors.

Keywords: foreign direct investment, Brazil, globalization, economic development, growth

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