scholarly journals Foreign direct investment in Latin America and the Caribbean – the evolution of flows

2021 ◽  
Vol 7 (3) ◽  
pp. 50-63
Author(s):  
S. A. Chirkin
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Commodity Prices ◽  
Capital Inflows ◽  
South American ◽  
Fdi Inflows ◽  
Macroeconomic Conditions ◽  
The Caribbean

The article examines the flows of foreign direct investment (FDI) in the countries of Latin America and the Caribbean (LACB) for the period from 2010 to 2020. The sources of capital inflows, their structural components, as well as the distribution of attracted investments by sectors of the recipient countries ' economies are analyzed. Quantitative indicators of FDI inflows and outflows for individual countries and for the region as a whole are presented, highlighting general trends. The trend of a decrease in the volume of attracted FDI in the LACB is emphasized. It is concluded that the decrease in foreign direct investment in South American countries confirms the direct dependence of FDI inflows on macroeconomic conditions and fluctuations in world commodity prices. Changes are noted in the approaches of multinational corporations to invest capital abroad in the context of the COVID-19 pandemic in favor of their local or cross-border use. The assessment of the actions of the authorities of the states of the region to attract foreign investment is given. The article examines the situation in the field of unresolved investment disputes involving the countries of the region and its impact on investment attractiveness. The role of Chinese FDI in the region, including its effectiveness in political terms, is considered separately.

Commodity prices will weigh on Latin America's FDI

2015 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Commodity Prices ◽  
Content Type ◽  
Economic Commission ◽  
The Caribbean

Subject The outlook for inward FDI. Significance A drop in foreign direct investment (FDI) in Latin America and the Caribbean in 2014 marked a change of trend, according to a report released on May 27 by the UN Economic Commission for Latin America and the Caribbean (ECLAC). The decline, attributed principally to lower commodity prices, was the first since 2009 and is likely to persist this year. Impacts At 2.6% of GDP, inbound FDI in 2014 was its lowest since 2009 and will remain slightly below its long-term average this year. Lower commodity prices reduced average returns on FDI to around 5% in 2014, down from over 9% in 2006-08; no rapid upturn is likely. Most investment abroad by LAC companies is within the region and, in 2015, will continue to be constrained by its sluggish growth.

Fiscal deficits raise debt concerns in Latin America

2016 ◽  
Keyword(s):  
Latin America ◽  
Commodity Prices ◽  
South American ◽  
Content Type ◽  
Government Deficits ◽  
Economic Commission ◽  
Growth Prospects ◽  
The Caribbean ◽  
Investment Spending ◽  
Spending Cuts

Subject The deteriorating fiscal position. Significance According to the UN Economic Commission for Latin America and the Caribbean (ECLAC), government deficits in most South American countries and Mexico widened in 2015 for the third consecutive year, in a context of slower economic growth and lower commodity prices. Barring Brazil, the increase was generally small but government borrowing, rising for several years, is increasingly limiting administrations' room for fiscal manoeuvre. Impacts Government borrowing is rising -- as are borrowing costs. Declining revenues may force unpopular spending cuts, worsening growth prospects. Caribbean countries in particular face unsustainable debt-servicing burdens that leave little for social and investment spending.

Foreign Direct Investment from China and Latin America

2016 ◽  
pp. 1934-1944
Author(s):  
Jose Godinez ◽  
Theodore Terpstra
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Fdi Inflows ◽  
The World ◽  
Motivation Strategy

Historically, Chinese corporations have been relatively unknown in Latin America. Total foreign direct investment (FDI) in Latin America was 18.1% of the world total in 2012 (UNCTAD, 2013). However, Chinese FDI in Latin America has averaged about US$10 billion per year since 2010, only a small part of Latin America's total FDI inflows (ECLAC, 2013). Yet the presence and economic leverage of Chinese corporations has become very substantial in several industries in the region, particularly the oil and mining industries. Trade between China and Latin America has also grown dramatically since 1999 (Luo, et al., 2010). Despite the growing economic connectivity between Latin America and China, the motivation, strategy and procedures behind China's FDI in the region have not yet been fully understood.

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