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The determinants of foreign direct investment in Brazil: Empirical analysis for 2001-2013: Eduarda Martins Correa da Silveira, Jorge Augusto Dias Samsonescu and Divanildo Triches
- Source: CEPAL Review, Volume 2017, Issue 121, Oct 2017, p. 171 - 184
- Spanish
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- 23 Oct 2017
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Abstract
This article aims to analyse the determinants of foreign direct investment (FDI) into Brazil between 2001 and 2013. It uses a vector error correction (VEC) model to analyse both the long-term function and the impulse-response function. The results show that levels of economic activity, wages and productivity are positively related to FDI inflows, which means that investors pursue market-seeking and efficiency-seeking strategies when targeting the Brazilian market. Although less important, the stability of the national economy and the exchange rate also proved statistically significant in explaining FDI inflows.
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