Foreign Direct Investment in Latin America During the Emergence of China and India: Stylized Facts
University of Geneva; Centre for Economic Policy Research (CEPR)
The World Bank - International Trade Department
University of California, Los Angeles
September 1, 2007
World Bank Policy Research Working Paper No. 4360
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.
Number of Pages in PDF File: 28
Keywords: Debt Markets, Transport and Trade Logistics, Common Carriers Industry, Corporate Lawworking papers series
Date posted: September 26, 2007
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