Abstract
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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