This chapter attempts to identify the determinants of foreign direct investment (FDI) into Latin American Countries (LAC) and the Caribbean (LAC) during the period from 1980 to 2003. Although a number of countries are aggressively pursuing investment agreements with the United States in order to increase investment, there is no evidence that signing such an agreement with the United States will bring increased investment. This is largely consistent with previous work on the relationship between BITs and investment. The analysis is also consistent with broader literature on FDI determinants in Latin America and the Caribbean, which shows that the size of the domestic economy and the ability to serve as an export platform are key drivers of FDI inflows.
Keywords: foreign direct investment; FDI inflows; LAC; Caribbean; investment treaties
Chapter. 5863 words.
Subjects: Public International Law
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