Quotation Tondl, Gabriele, Prüfer, Patricia. 2008. The FDI-Growth Nexus in Latin America: The Role of Source Countries and Local Conditions.. CentER Discussion Paper 2008-61.




Foreign Direct Investment (FDI) has surged in Latin America (LA) since the mid 1990s. European and North American FDI is of capital importance. We investigate the FDI-growth nexus in LA allowing for different source countries, regional hetero- geneity, interaction terms with FDI, and more than 20 growth determinants. We use Bayesian Model Averaging to address model uncertainty and to select the best mod- els and most robust parameters. The principal finding is that a positive FDI-growth nexus in LA requires a functioning legal framework and macroeconomic stability. We also find that European FDI is only indirectly correlated with productivity growth, whereas North American FDI is more robust and thus directly correlated with pro- ductivity growth.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title The FDI-Growth Nexus in Latin America: The Role of Source Countries and Local Conditions.
Title of whole publication CentER Discussion Paper 2008-61
Year 2008
URL http://dbiref.uvt.nl/iPort?request=full_record&db=wo&language=eng&query=doc_id=3106435


EU Foreign Direct Investment in Latin America
Tondl, Gabriele (Details)
Prüfer, Patricia (Tilburg University)
Department of Economics (Badinger) (Details)
Europainstitut (Badinger) (Former organization)
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