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Foreign Direct Investment in Latin America and the Caribbean 2005

image of Foreign Direct Investment in Latin America and the Caribbean 2005

This publication sets out and analyses the main foreign direct investment (FDI) trends in the countries of Latin America and the Caribbean. Abstract In 2005 amounted to over US$ 68 billion, almost 11% more than in 2004. These inflows greatly exceed the figures recorded between 2001 and 2003, but they still fall short of the volumes observed during the FDI boom of the late 1990s. The region also continues to see its share in world flows decline, which suggests that it has yet to realize its true potential for attracting such investment.

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Active policies to attract foreign direct investment in Latin America and the Caribbean

Although many different strategies have been employed to attract foreign direct investment (FDI), the countries that have been most successful in this regard are those that have adopted more active investment attraction policies. In the process, the countries also generate know-how that enables them to develop increasingly complex policy frameworks. At a theoretical level, these frameworks can be grouped into the three categories outlined below.

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