1945

Abstract

image of Abstract

Foreign direct investment (FDI) flows to Latin America and the Caribbean dwindled for the second year in a row in 2001, and preliminary data for 2002 show no signs of a recovery. This trend was observed in both greenfield investment and mergers, acquisitions and privatizations. The investments announced by transnational corporations (TNCs) for the coming years remain concentrated in the service and infrastructure sectors. This indicates that the region has continued to strengthen its links with the incipient networks being established in service provision at the global level. This development contrasts with the Latin American economies’ gradual disengagement from international production systems led by TNCs in the manufacturing sector. This combination of trends has been most evident in the South American countries.

Related Subject(s): International Trade and Finance
Sustainable Development Goals:
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