Abstract
In this paper, we examine the effects of logistic infrastructures as determinants of foreign investment in Latin America and the Caribbean from 2008 to 2021. We analyze the data using panel data and a feasible generalized least squares model. Our findings indicate that FDI tends to flow to countries with adequate transport and telecommunications infrastructure, although the availability of an electricity grid suitable for the needs of investors is the most significant factor in Latin America. We also determined that there is a limit beyond which investment in transportation infrastructure does not contribute to attracting foreign investment. Furthermore, our analysis shows that the region attracts FDI due to new market opportunities and lower production costs. We also find that the economic opening in Latin America discourages investment by neighboring investors, highlighting the importance of policies that balance foreign capital attraction with respect to international agreements with neighboring countries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
