Investment and Economic Reform in Latin America

image of Investment and Economic Reform in Latin America

This book is a part of a project to study the economic reforms implemented in Latin America and the Caribbean in the last two decades. This publication analyzes the investment process and attempts to link macroeconomic aspects to sectoral, microeconomic and institutional factors. Thus, it examines the impact of structural reform, institutional change and market structures in conjunction with important legal and regulatory aspects. The book also contributes to the understanding of the investment process in the context of the economic reforms.



Investment in the industrial sector

The industrial sector was hardest hit by the economic reforms, with a higher cost of adjustment than in any other sector. The investment coefficient for this sector fell, recovered slowly in some countries and only in the case of Chile was able to grow strongly enough to exceed the averages for previous decades. The most drastic changes in the industrial sector were triggered by market opening and liberalization. Interviews with businesspeople and detailed surveys carried out in several countries all lead to the conclusion that entrepreneurs in the industrial sector adopted a defensive position in response to liberalization and deregulation.


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