Transnational company profits: Repatriation and reinvestment

Over the past decade the profits of transnational corporations operating in Latin America and the Caribbean have increased fivefold. Returns swelled from an average of US$ 20 billion (at current prices) between 1998 and 2002 to US$ 113.067 billion in 2011. This surge reflects both the growing importance of transnational corporations in the region’s economy and their higher average returns, on the back of robust domestic demand and high prices for export commodities. The magnitude of this change calls for an examination of the role of FDI as a source of capital for these economies and its contribution to growth and structural change in the region.

Related Subject(s): International Trade and Finance