Abstract

FRAGA, Gilberto Joaquim. INVESTMENT CLIMATE AND FOREIGN DIRECT INVESTMENT IN LATIN AMERICAN COUNTRIES: FIRM-LEVEL EVIDENCE. Estud. econ. [online]. 2022, vol.39, n.79, pp.103-126. ISSN 2525-1295.

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 infrastructure 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 obstacles and reduce the time it takes to clear customs will increase the likelihood of attracting FDI.

Keywords : developing countries; FDI; export.

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