Effects of the Foreign Direct Investment on the Productivity of Latin American Countries (1990-2012)

Résumé 0

In a dynamic where international economic integration is constantly growing, multinational enterprises are important to understand the mechanisms that may induce productivity growth. Foreign Direct Investment (FDI) is a response of multinational enterprises to take advantage of a foreign country’s economic structure. Using a panel analysis, this study aims to enhance and improve the evidence of the effects of FDI on the productivity of Latin American countries, within an economic approach. The positive relationship between the variables of interest suggests that an increase in FDI inflows would impact the productivity growth of the analysed countries at a fairly high rate. This rate is understandable considering that Latin American economies are characterized by being highly susceptible to radical changes in their respective performances when they have greater access to productive factors; in this case, capital inflows can affect significantly the performance of the countries in this study.