Foreign Direct Investment in Latin America during the Emergence of China and India : Stylized Facts
In spite of the growing concerns about foreign direct investment being diverted from Latin America to China and India, the best available data show that Latin America has performed relatively well since 1997. Foreign capital stocks from OECD countr...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/09/8339193/foreign-direct-investment-latin-america-during-emergence-china-india-stylized-facts http://hdl.handle.net/10986/7363 |
| Summary: | In spite of the growing concerns about
foreign direct investment being diverted from Latin America
to China and India, the best available data show that Latin
America has performed relatively well since 1997. Foreign
capital stocks from OECD countries and the United States
in particular in China and India are still far from those
in the largest Latin American economies. The evidence shows
that foreign capital stocks in China increased more than in
Latin America during 1990-1997, but not as much since 1997.
In fact, Latin America has actually performed better than
China since 1997 given its lack of relative growth. The
growth of foreign capital stocks in India was more stable
than in China. Nonetheless, after controlling for shocks
emanating from the source countries and bilateral distance
between source and host countries, this paper finds a
significant change in foreign capital stocks relative to
China between 1990 and 1997, but no change relative to India. |
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