Foreign Direct Investment in Latin America and the Caribbean 2010

image of Foreign Direct Investment in Latin America and the Caribbean 2010

In 2010, the Latin American and Caribbean region showed great resilience to the international financial crisis and became the world region with the fastest-growing flows of both inward and outward foreign direct investment (FDI). The upswing in FDI in the region has occurred in a context in which developing countries in general have taken on a greater share in both inward and outward FDI flows. This briefing paper is divided into five sections. The first offers a regional overview of FDI in 2010. The second examines FDI trends in Central America, Panama and the Dominican Republic. The third describes the presence China is beginning to build up as an investor in the region. Lastly, the fourth and fifth sections analyze the main foreign investments and business strategies in the telecommunications and software sectors, respectively.



Central America, Panama and the Dominican Republic: Export-oriented foreign direct investment

In recent decades, foreign direct investment (FDI) has played an important role in the development process in Central America, Panama and Dominican Republic (hereinafter referred to as the subregion). Since the 1980s, these countries have implemented a series of economic reforms designed to serve as a new model of international integration and economic development, underpinned by trade liberalization, promotion of the export sector and elimination of barriers to FDI. This chapter examines trends in FDI channelled into the subregion, with special attention to export-platform FDI, and analyses the incentives used to attract investments.


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