Cravino, Javier

Foreign Direct Investment in Latin America During the Emergence of China and India Stylized Facts / Cravino, Javier [electronic resource] : Cravino, Javier - Washington, D.C., The World Bank, 2007 - 1 online resource (28 p.) - Policy research working papers. World Bank e-Library. .

In spite of the growing concerns about foreign direct investment being diverted from Latin America to China and India, the best available data show that Latin America has performed relatively well since 1997. Foreign capital stocks from OECD countries and the United States in particular in China and India are still far from those in the largest Latin American economies. The evidence shows that foreign capital stocks in China increased more than in Latin America during 1990-1997, but not as much since 1997. In fact, Latin America has actually performed better than China since 1997 given its lack of relative growth. The growth of foreign capital stocks in India was more stable than in China. Nonetheless, after controlling for shocks emanating from the source countries and bilateral distance between source and host countries, this paper finds a significant change in foreign capital stocks relative to China between 1990 and 1997, but no change relative to India.

10.1596/1813-9450-4360


Capital formation
Capital stocks
Common Carriers Industry
Corporate Law
Debt Markets
Developing countries
Finance and Financial Sector Development
Financial support
Fixed capital
Foreign capital
Foreign Direct Investment
Host countries
Host country
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International Bank
Law and Development
Non Bank Financial Institutions
Transport
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