Determinantes de la inversión extranjera directa en América Latina: una visión desde la economía administrativa

Abstract

The present work proposes an extension to Dunning's eclectic theory to explore the effect that variables, with an administrative economics scope, have on the behavior of foreign direct investment (FDI) flows in the case of five Latin American countries. Using a panel data model, it is estimated that, for the period 2006-2015, variables such as the cost of enforcing a contract, the cost of registering property, size of the banking industry and labor in the agriculture industry discourage FDI towards Latin American countries, while elements related to trade openness encourage it. In order to increase the flow of FDI into the region, it is suggested to design mechanisms that reduce transaction costs accompanied by public policies that promote competition within the local banking sector and pursue the specialization of labor.