The Ftaa and the Location of FDI

INTEGRATING THE AMERICAS: FTAA AND BEYOND, A. Estevadeordal, D. Rodrik, A. Taylor and A. Velasco, eds., Harvard University Press, Forthcoming

35 Pages Posted: 21 May 2005

See all articles by Eduardo Levy Levy-Yeyati

Eduardo Levy Levy-Yeyati

Universidad Torcuato Di Tella - School of Business

Ernesto Stein

Inter-American Development Bank (IDB)

Christian Daude

Inter-American Development Bank (IADB)

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Abstract

The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a number of highly relevant questions: For instance, what effect will the FTAA have on FDI from the US and Canada to Latin American countries? How will it affect FDI from the rest of the world? What are the implications for a country such as Mexico, whose preferential access to the US may be diluted? Should we expect to see winners and losers, and if so, what determines whether a particular country wins or loses? To address these questions, in this paper we look at the impact of regional integration on FDI, and attempt to derive conclusions regarding the likely impact of the FTAA on countries in Latin America.

Suggested Citation

Levy-Yeyati, Eduardo Levy and Stein, Ernesto Hugo and Daude, Christian, The Ftaa and the Location of FDI. INTEGRATING THE AMERICAS: FTAA AND BEYOND, A. Estevadeordal, D. Rodrik, A. Taylor and A. Velasco, eds., Harvard University Press, Forthcoming, Available at SSRN: https://ssrn.com/abstract=726949

Eduardo Levy Levy-Yeyati (Contact Author)

Universidad Torcuato Di Tella - School of Business ( email )

Saenz Valiente 1010
C1428BIJ Buenos Aires
Argentina

Ernesto Hugo Stein

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue, NW
Research Department
Washington, DC 20577
United States

Christian Daude

Inter-American Development Bank (IADB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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