Corruption in Latin America and How It Affects Foreign Direct Investment (FDI)

2016 ◽  
pp. 30-46 ◽  
Author(s):  
Jose Godinez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Detailed Account ◽  
Clear Definition ◽  
Host Countries ◽  
Positive Effects ◽  
Definition Of

Foreign direct investment has aided in a significant manner the economic development of Latin America since the early 1990s because capital in this region is limited (Blanco, 2012). Despite some criticism literature on FDI has overwhelmingly demonstrated that FDI has positive effects on host countries (Tan & Meyer, 2011) especially in Latin America (Wooster & Diebel, 2010). Authors researching the effects of FDI in Latin America have stated that this investment helps to growth on productivity (Blonigen & Wang, 2005) and thus, might help developing countries to begin their road to development. Therefore, scholars have devoted great efforts to understanding the determinants of FDI to Latin America and a brief overview will be provided in this study.This paper will present a detailed account of FDI flows to the region, a clear definition of corruption and how it is manifested in Latin America. After these definitions, suggestions are provided to deal with the problem of corruption in the region.

EKREM TATOGLUAND KEITH W. GLAISER, Dimensions of Western Foreign Direct Investment in Turkey (Westport, Conn.: Quorum Books, 2000). Pp. 226. $67.50 cloth.

2001 ◽  
Vol 33 (4) ◽  
pp. 663-665 ◽  
Author(s):  
Asim Erdilek
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
United Nations ◽  
Multinational Corporation ◽  
Direct Investment ◽  
Foreign Investor ◽  
Managerial Control ◽  
The Past ◽  
The United Nations

The surge in foreign direct investment (FDI)—investment with managerial control by the foreign investor, usually a multinational corporation—has been the major driver of globalization in the past two decades and the accelerator of economic development in many developing countries. It has, however, bypassed Turkey. By all relevant relative measures found in the United Nations' annual World Investment Report, Turkey has failed to attract much FDI.

scholarly journals Regional Model Bit’s : A New Down For the Developing Countries

2021 ◽  
Vol 4 (2) ◽  
pp. 114-121
Author(s):  
Abdallah Mohamed Othman El Nofely ◽  
Rehna Gul
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regional Model ◽  
Economic Sector ◽  
Gear Up ◽  
Advance Technology ◽  
Host Countries ◽  
Scale Down

Foreign direct investment (FDI) plays a crucial role in the economic sector, particularly in developing countries. BIT lays down instrumental principles which help to protect investors’ establishments in host states, by inter alia encouraging prompt compensation in case of expropriation. Governments need FDIs to gear up their economic growth, advance technology, and scale down unemployment. Most scholarly writings are in favor that BIT is a necessary tool for promoting FDIs, however this study takes a different approach and categorically unveils the draw backs of BIT in developing countries by highlighting some of the contentious provisions that have sparked unprecedented legal, economic, sociopolitical and diplomatic strife between the host countries, investors and investors’ home countries. Therefore, the author proposes development for regional Model BITs that would go in line with national laws to curtail the persisting sovereignty and socio-economic challenges.

Regional and Sectoral Disparities in Inflow of FDI in India

2012 ◽  
pp. 149-162 ◽  
Author(s):  
Behrooz Shahmoradi
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Developing Country ◽  
Direct Investment ◽  
Steady Increase ◽  
Policy Makers ◽  
Fdi Inflows ◽  
Reform Period ◽  
Micro Level

During the last two decades, Foreign Direct Investment (FDI) has become increasingly important in the developing world, with a growing number of developing countries seeking in attracting substantial and rising amounts of inward FDI. Furthermore, FDI has become the most important source of finance that can contribute to economic development. Recognizing this, all the governments want to attract it. India as a developing country is not an exception in this regard therefore study the different aspects of FDI can be helpful for policy makers in macro as well as micro level. Since 1990, FDI has been considered as the most powerful driver of economic development. While India has seen a steady increase in FDI inflows in the post-reform period, therefore, this study tries to analyze the regional and sectoral disparities in Inflow of FDI in India since 1990. The analysis showed that there is a disparity between states in India and it also indicates a shift from primary and secondary sectors to tertiary sectors and pervasive computing areas.

Regional and Sectoral Disparities in Inflow of FDI in India

2010 ◽  
pp. 234-246
Author(s):  
Behrooz Shahmoradi
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Developing Country ◽  
Direct Investment ◽  
Steady Increase ◽  
Policy Makers ◽  
Fdi Inflows ◽  
Reform Period ◽  
Micro Level

During the last two decades, Foreign Direct Investment (FDI) has become increasingly important in the developing world, with a growing number of developing countries seeking in attracting substantial and rising amounts of inward FDI. Furthermore, FDI has become the most important source of finance that can contribute to economic development. Recognizing this, all the governments want to attract it. India as a developing country is not an exception in this regard therefore study the different aspects of FDI can be helpful for policy makers in macro as well as micro level. Since 1990, FDI has been considered as the most powerful driver of economic development. While India has seen a steady increase in FDI inflows in the post-reform period, therefore, this study tries to analyze the regional and sectoral disparities in Inflow of FDI in India since 1990. The analysis showed that there is a disparity between states in India and it also indicates a shift from primary and secondary sectors to tertiary sectors and pervasive computing areas.

scholarly journals New Dependency?: Economic Links between China and Latin America

2017 ◽  
Vol 53 (01) ◽  
pp. 1740001 ◽  
Author(s):  
NÉSTOR CASTAÑEDA
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Latin America ◽  
United Nations ◽  
Capital Flows ◽  
Soft Power ◽  
Direct Investment ◽  
Institutional Factors ◽  
Policy Goals ◽  
Recent Trends

This paper focuses on the most recent trends of Chinese finance (foreign direct investment (FDI) and development loans) in Latin America and their impact on economic development. In particular, this paper explores the economic and institutional factors that attract loans and FDI from China to Latin America. Based on data from the Chinese Ministry of Commerce and the United Nations on Chinese FDI and development loans to Latin America, this article argues that Chinese capital flows to the region, rather than politically motivated, are mainly motivated by trade interests, the evolution of the market of commodities, and natural resources-related policy goals. These capital flows are functional to the Chinese government’s use of soft power in the region, but these goals are secondary to market-based interests.

scholarly journals China’s Foreign Investment and Assistance: Implications for Cambodia’s Development and Democratization

2009 ◽  
Author(s):  
Kheang Un
Keyword(s):  
Economic Development ◽  
Human Rights ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Developing World ◽  
Development Assistance ◽  
Economic Prosperity ◽  
Positive Effects ◽  
The Past

With a strong economy and newly acquired confidence following three decades of rapid economic expansion, China has pursued an outward looking policy based upon foreign direct investment, development assistance and trade targeting particularly the developing world. Such expansion has drawn concerns over its impact on human rights, democratization and the environment. This paper assesses these concerns by examining Sino-Cambodia relations over the past sixteen years. It concludes that while trade, development assistance, and investment have had positive effects on Cambodia’s economic development, concerns that these engagements have derailed deeper democratization in Cambodia are not deterministic. Cambodia’s authoritarian trajectory is less a product of China’s engagement and more of the Cambodian elites’ defiance of Western efforts at democratic promotion and belief in state developmentalism—economic prosperity with tight political control.

Global Outward Foreign Direct Investment and Economic Development: Panel Regression Approach

2015 ◽  
Vol 5 (4) ◽  
Author(s):  
K. V. Bhanumurthy ◽  
Manoj Kumar Sinha
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Principal Component ◽  
Developed Countries ◽  
Annual Growth Rate ◽  
Panel Regression ◽  
Outward Foreign Direct Investment ◽  
Regression Approach

Outward Foreign Direct Investment (OFDI) is in the nature of international relocation of production. OFDI acts as a complementary input in the host country and hence aims at rational allocation of global resources. The pattern of economic development on a multilateral scale would, thus, determine the pattern of OFDI. We consider the effect of economic development on OFDI originated from developing countries, with the help of a set of socio-economic variables. With the help of Principal Component Analysis we construct a set of six composite indices, namely, human resource, infrastructure, labour, market, trade openness and resource, as determinants of OFDI. We use a panel regression approach both in terms of OFDI stock and flow. The period of study is 1990-2009. Empirical results indicate that developing countries outflow has not been growing significantly. The annual growth rate of global FDI outflows is 3.2 percent. FDI outflow is mainly from developed countries. Resource is most important determinant because it has elasticity greater than one. Resource and market variables indicate that in long run FDI focused on resource seeking and market-seeking.

INCONSISTENCIES IN ICSID AWARDS ON DISPUTES RELATED TO MFN AND UMBRELLA CLAUSE

2021 ◽  
Vol 6 (2) ◽  
pp. 247-264
Author(s):  
Herliana Herliana
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Case Study Method ◽  
Host Countries ◽  
Foreign Investors ◽  
Investment Arbitration

Investment arbitration has been acclaimed as an important part of Foreign Direct Investment (FDI) movement around the globe because it provides a neutral and trustable forum for settling investment dispute. However, many argue that investment arbitration often becomes advocates of foreign investors and neglect the developing country’s interests as the host of investment. This paper aims at studying the investment arbitration awards rendered by International Center for Settlement of Investment Dispute (ICSID) tribunals launched against developing countries. The question is whether and to what extent those awards have equally observed the interests of foreign investors and host states of investments. To answer the questions, this paper employs case study method and use publicly available ICSID cases. This research shows that some ICSID tribunals have inconsistent reasoning which led to contradictory decisions. Apparently, as some cases indicate ICSID tribunals gave more weight to the need to protect foreign investors rather than host countries’ development interests. As a consequence, inconsistency and ambiguity have led to uncertainty and unpredictability of the forum. This is not only disadvantaged the parties due to inability to foresee the likely outcome of the disputes but also endanger the ICSID tribunals’ credibility as neutral and reliable forum.

scholarly journals Trends and Determinants of Korean Outward FDI

2009 ◽  
Vol 27 (1) ◽  
pp. 126-154 ◽  
Author(s):  
Jungmin Kim ◽  
Dong Kee Rhee
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Firms ◽  
Multinational Firm ◽  
Location Decisions ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Host Countries ◽  
Distinctive Features

This paper examines the trends and determinants of Korean outward foreign direct investment and the extent to which location decision explanation needs to be nested within the general theory of the multinational firm. In the context of investment development path developed by Dunning and Narula, we examine the important factors for the location decisions of Korean outward foreign direct investment, considering host countries at very different stages of economic development. In line with this objective, we test empirically the determinants of Korean outward investment using macro economic factors of host countries. Thus, we identify several factors that impact on such trends and develop hypotheses that could explain the phenomenon generically. We test our hypotheses using official Korean outward FDI data collected from 1994 to 2005. The behavior of Korean multinational firms shows several distinctive features. As a result, we find that the dynamic effects of economic development have influenced on the changes of outward FDI characteristics.

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