De la Cruz Gallegos, Jose Luis and Ivanova Boncheva, Antonina and Ruiz-Porras, Antonio (2008): Competition between Latin America and China for US direct investment. Forthcoming in: Global Economy Journal
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There is a belief that the Chinese economy competes with the Latin-American ones for investment flows. Here we analyze the determinants of the US FDI outflows to the most representative Latin-American economies. We develop such assessment with a double-procedure cointegration analysis based on the time-series methodologies of Toda and Yamamoto (1995) and Liu, Song and Romilly (1997). The results suggest that long-run investment to the Latin-American region mainly depends on the performance of the US economy. Furthermore, they suggest the existence of a substitution effect between the Latin American countries and China for US investment flows.
|Item Type:||MPRA Paper|
|Original Title:||Competition between Latin America and China for US direct investment.|
|English Title:||Competition between Latin America and China for US direct investment|
|Keywords:||FDI; Latin America; China; US; Cointegration|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
|Depositing User:||Antonio Ruiz-Porras|
|Date Deposited:||14. Jun 2010 10:18|
|Last Modified:||12. Feb 2013 14:17|
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