Carleton Author

Montero, Alfred

Department

Political Science

Journal Title

Latin American Research Review

Publication Date

2008

First Page

55

Last Page

83

Publisher

University of New Mexico

File Name

044_Montero-Alfred_MacroeconomicDeedsNotReformWordsDeterminantsOfForeignDirectInvestmentInLatinAmerica.pdf

Abstract

Numerous studies on the determinants of foreign direct investment fl ows in Latin America underscore the importance of risk- and cost-mitigating institutions that support good governance, political and economic freedom, and demonstrate a credible commitment to economic reform by regional governments. This study tests these variables against market size, macroeconomic policy, and factor controls to assess which combinations of variables explain the distribution of foreign infl ows. Using a time-series cross-sectional data set of fi fteen Latin American economies from 1985 to 2003, the study concludes that past performance on the current account provides suffi cient commitment by regional governments and that regime, good governance, and reform variables are, by comparison, inconsistent predictors of foreign direct investment.

Rights Management

Carleton College does not own the copyright to this work and the work is available through the Carleton College Library following the original publisher's policies regarding self-archiving. For more information on the copyright status of this work, refer to the current copyright holder.

RoMEO Color

Green Unofficial

Preprint Archiving

Yes (with acknowledgement)

Postprint Archiving

Yes (with acknowledgement)

Publisher PDF Archiving

Yes (with acknowledgement, preferred)

Contributing Organization

Carleton College

Type

Article

Format

application/pdf

Language

English

DOI

10.1353/lar.2008.0008

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