Foreign Direct Investment in Latin America and the Caribbean 2000

image of Foreign Direct Investment in Latin America and the Caribbean 2000

This publication sets out and analyses the main foreign direct investment (FDI) trends in the countries of Latin America and the Caribbean. In 2000, for the first time in nearly two decades, the Latin American and Caribbean region's FDI inflows dropped by 20% from the previous year's figure to stand at just US$ 74.191 billion.



Introduction: A regulatory challenge

The ECLAC publication Foreign Investment in Latin America and the Caribbean, 1998 Report began with a reference to the very significant statistical challenge that faces decision-makers interested in making sense out of the large but heterogeneous amount of official information that is available on foreign direct investment (FDI). It points out that very serious differences in methodology, accounting practices, definitions and coverage of the principal official sources of statistical information result in a less than full understanding of FDI as an economic phenomenon. Policy-making in this field can become unnecessarily complex, given that the available official statistical information does not adequately reflect the real-world situation of FDI. ECLAC feels that the efforts made by international and national institutions to promote methodological convergence have been very valuable; nevertheless, much remains to be done. The statistical challenge to policy-makers is to improve official information and to supplement it with data from other sources in order to obtain a clearer picture of what is actually involved in FDI.


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