FOREIGN DIRECT INVESTMENT IN LATIN AMERICA: THE CASE OF PERU
Abstract
The majority of the Latin American countries proceeded to political, financial and social reforms so as to improve their attractiveness and to absorb more foreign capitals in order to achieve economic growth. Among the developing countries of the region, Peru managed to attract significant amounts of foreign direct investment mostly because of the abundance of natural resources. Nevertheless, Peru did not manage to become the top foreign capitals destination among the Latin American countries for several reasons. It is observed that the foreign investors’ dominant policy in FDI, the fact that the majority of the infrastructure realized in urban regions, the investment conditions, the external debt, the private sector and the ineffective use of natural resources held back the country’s attractiveness to foreign investors.
References
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[21] Irwin, A., and Gallagher, K.P. 2013. Chinese Mining in Latin America: A Comparative Perspective. Journal of Environment and Development, 22 (2): 207 – 234. Available at: http://dx.doi.org/10.1177/1070496513489983
[22] Khoury, T.A., and Peng, M.W. 2011. Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean. Journal of World Business, 46(3): 337 – 45. Available at: http://dx.doi.org/10.1016/j.jwb.2010.07.015
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[25] Leither, S.M., and Stehrer, R. 2013. Access to finance and funding composition during the crisis: A firm – level analysis of Latin American countries. Latin American Journal of Economics, 50 (1): 1- 47.
[26] Metaxas, T., and Kechagia, P. 2016. FDI in Central Asia: The Case of Uzbekistan, Applied Econometrics and International development, 16 (1): 63 – 76
[27] Moser, T. 2001. MNCs and sustainable business practice: The case of the Colombian and Peruvian petroleum industries. World Development, 29 (2): 291 – 309. Available at: http://dx.doi.org/10.1016/S0305-750X(00)00094-2
[28] Olapido, O.S. 2013. Does foreign direct investment cause long run economic growth? Evidence from the Latin American and the Caribbean countries. International Economics and Economic Policy, 10 (4): 569 – 82. Available at: http://dx.doi.org/10.1007/s10368-012-0225-4
[29] Rauch, A. et al. 2013. National culture and cultural orientations of owners affecting the innovation – growth relationship in five countries. Entrepreneurship and Regional Development, 25 (9-10): 732 – 755. Available at: http://dx.doi.org/10.1080/08985626.2013.862972
[30] Rivas, R.M., and Mayorga, D. 2011. Internationalization of Peruvian cuisine: An analysis of internationalization strategies of Peruvian restaurants. Innovar, 21 (39): 205 – 16.
[31] Rojas, J. 2001. The increased role of capital in the Peruvian financial system: 1990 – 1998. Latin America Business Review, 2 (1 – 2): 101 – 18. Available at: http://dx.doi.org/10.1300/J140v02n01_07
[32] Sanchez – Martin, M.E., De Arce, R., and Escribano, G. 2014. Do changes in the rules of the game effect FDI flows in Latin America? A look at the macroeconomic, institutional and regional integration determinants of FDI. European Journal of Political Economy, 34: 279 – 99. Available at: http://dx.doi.org/10.1016/j.ejpoleco.2014.02.001
[33] Subasat, T., and Bellos, S. 2013. Governance and foreign direct investment in Latin America: A panel gravity model approach. Latin American Journal of Economics, 50 (1): 107 – 31.
[34] Trevino, L.J., and Mixon, Jr. F.G. 2004. Strategic factors affecting foreign direct investment decisions by multi – national enterprises in Latin America. Journal of World Business, 39 (3): 233 – 243. Available at: http://dx.doi.org/10.1016/j.jwb.2004.04.003
[35] Tuman, J.P., and Emmert, C.F. 1999. Explaining Japanese foreign direct investment in Latin America, 1979 – 1992. Social Science Quarterly, 80 (3): 539 – 55. Available at: http://dx.doi.org/10.1177/106591290105400105
[36] Urrunaga, R., and Aparicio, C. 2013. Infrastructure and economic growth in Peru. Cepal Review, 107: 145 – 163.
[37] Van Parys, S. 2012. The effectiveness of tax incentives in attracting investment: Evidence from developing countries. Reflets et Perspectives de la Vie Economique, 51 (3): 129 – 141. Available at: http://dx.doi.org/10.3917/rpve.513.0129
[38] Xu, X. 2010. China’s outbound energy FDI and cooperation with Canada. Geopolitics of Energy, 32 (4): 6 – 10.
[39] Zegarra, L.F. 2013. Transportation costs and the social savings of railroads in Latin America. The case of Peru. Revista de Historia Economia – Journal of Iberian and Latin American Economic History, 31 (1): 41 – 72. Available at: http://dx.doi.org/10.1017/S0212610913000013
[2] Agudelo, D.A., and Castano, M.M. 2011. Do foreign flows increase risk in emerging stock markets? Evidence from six Latin American countries 1999 – 2008. Innovar, 21 (39): 133 – 151. Available at: http://dx.doi.org/10.2139/ssrn.2503134
[3] Alfaro, L., Kalemli – Ozcan, S., and Volosovych, V. 2008. Why doesn’t capital flow from rich to poor countries? An empirical investigation. Review of Economics and Statistics, 90 (2): 347 – 368. Available at: http://dx.doi.org/10.3386/w11901
[4] Anaya, M., and Alvaro, J. 2012. Foreign Direct Investment and Economic Growth: Evidence for Latin America 1980 – 2010. Revista de Economia del Careibe, 10: 36 – 64. Available at: http://dx.doi.org/10.1016/j.sbspro.2014.03.668
[5] Arbelaez, H., and Ruiz, I. 2013. Macroeconomic antecedents to U.S. investment in Latin America. Journal of Business Research, 66(3): 439 – 47. Available at: http://dx.doi.org/10.1016/j.jbusres.2012.04.011
[6] Armijo, L.E. 2013. Equality and Regional Finance in the Americas. Latin American Politics and Society. 55 (4): 95 – 118. Available at: http://dx.doi.org/10.1111/j.1548-2456.2013.00210.x
[7] Baker, P., Friel, S., Schram, A., and Labonte, R. 2016. Trade and investment liberalization, food systems change and highly processed food consumption: a natural experiment contrasting the soft-drink markets of Peru and Bolivia. Globalization and Health, 12:24. Available at: http://dx.doi.org/10.1186/s12992-016-0161-0
[8] Basnet, H.C., and Upadhyaya, K.P. 2014. Do remittances attract foreign direct investment? An empirical investigation. Global Economy Journal, 14 (1): 1 – 9. Available at: http://dx.doi.org/10.1515/gej-2013-0052
[9] Bengoa, M., and Sanchez – Robles, B. 2003. Foreign direct investment, economic freedom and growth: New evidence from Latin America, European Journal of Political Economy, 19 (3): 529 – 45. Available at: http://dx.doi.org/10.1016/S0176-2680(03)00011-9
[10] Biglaiser, G., and DeRouen, Jr. K. 2006. Economic reforms and inflows of foreign direct investment in Latin America. Latin America Research Review, 41 (1): 51 – 57. Available at: http://dx.doi.org/10.1177/146499340700700303
[11] Bury, J. 2005. Mining mountains: Neoliberalism, land texture, livelihoods and the new Peruvian mining industry in Cajamarca. Environment and Planning A, 37 (2): 221 – 239. Available at: http://dx.doi.org/10.1068/a371
[12] Castro, J.F., Baca, J., and Ocampo, J.P. 2012. (RE)counting the poor in Peru: A multidimensional approach. Latin American Journal of Economics, 49 (1): 37 – 65. Available at: http://dx.doi.org/10.2139/ssrn.1577881
[13] Chavez, B., and Dupuy, J. 2010. Inward FDI in Peru and its policy context, Vale Columbia Center, Available at: http://www.vcc.columbia.edu/files/vale/documents/Peru_IFDI_Aug_4_FINAL.pdf
[14] Cole, J.C., and Roberts, J.T. 2011. Lost opportunities? A comparative assessment of social development elements of six hydroelectricity CDM projects in Brazil and Peru. Climate and Development, 3 (4): 361 – 79, Available at: http://dx.doi.org/10.1080/17565529.2011.623831
[15] Dollar, D., Hallward – Driemeier, M., and Mengistae, T. 2006. Investment climate and international integration. World Development, 34 (9): 1498 – 1516. Available at: http://dx.doi.org/10.1596/1813-9450-3323
[16] ECLAC. 2012. Foreign Direct Investment in Latin America and the Caribbean, Available at: http://www10.iadb.org/intal/intalcdi/PE/2013/11869en.pdf
[17] ECLAC. 2015. Foreign Direct Investment in Latin America and the Caribbean, United Nations, Available at: http://repositorio.cepal.org/bitstream/handle/11362/38215/S1500534_en.pdf
[18] Ericsson, M., and Larsson, V. 2012. E&MJ’s annual survey of global mining investment. Engineering and Mining Journal, 213 (1): 24 – 7.
[19] Fukumi, A., and Nishjima, S. 2010. Institutional quality and foreign direct investment in Latin America and the Caribbean. Applied Economics, 42 (14): 1857 – 1864. Available at: http://dx.doi.org/10.1080/00036840701748979
[20] Gonzalez – Vicente, R. 2012. Mapping Chinese Mining Investment in Latin America: Politics or Market? The China Quartely, 209(March 2012): 35 – 38. Available at: http://dx.doi.org/10.1017/S0305741011001470
[21] Irwin, A., and Gallagher, K.P. 2013. Chinese Mining in Latin America: A Comparative Perspective. Journal of Environment and Development, 22 (2): 207 – 234. Available at: http://dx.doi.org/10.1177/1070496513489983
[22] Khoury, T.A., and Peng, M.W. 2011. Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean. Journal of World Business, 46(3): 337 – 45. Available at: http://dx.doi.org/10.1016/j.jwb.2010.07.015
[23] Kotschwar, B. 2014. China’s Economic Influence in Latin America. Asian Economic Policy Review, 9 (2): 202 – 222. Available at: http://dx.doi.org/10.1111/aepr.12062
[24] Larsson, V., and Ericsson, M. 2014. E&MJ’’s annual survey of global metal – mining investment. Engineering and Mining Journal, 215 (1): 26 – 31.
[25] Leither, S.M., and Stehrer, R. 2013. Access to finance and funding composition during the crisis: A firm – level analysis of Latin American countries. Latin American Journal of Economics, 50 (1): 1- 47.
[26] Metaxas, T., and Kechagia, P. 2016. FDI in Central Asia: The Case of Uzbekistan, Applied Econometrics and International development, 16 (1): 63 – 76
[27] Moser, T. 2001. MNCs and sustainable business practice: The case of the Colombian and Peruvian petroleum industries. World Development, 29 (2): 291 – 309. Available at: http://dx.doi.org/10.1016/S0305-750X(00)00094-2
[28] Olapido, O.S. 2013. Does foreign direct investment cause long run economic growth? Evidence from the Latin American and the Caribbean countries. International Economics and Economic Policy, 10 (4): 569 – 82. Available at: http://dx.doi.org/10.1007/s10368-012-0225-4
[29] Rauch, A. et al. 2013. National culture and cultural orientations of owners affecting the innovation – growth relationship in five countries. Entrepreneurship and Regional Development, 25 (9-10): 732 – 755. Available at: http://dx.doi.org/10.1080/08985626.2013.862972
[30] Rivas, R.M., and Mayorga, D. 2011. Internationalization of Peruvian cuisine: An analysis of internationalization strategies of Peruvian restaurants. Innovar, 21 (39): 205 – 16.
[31] Rojas, J. 2001. The increased role of capital in the Peruvian financial system: 1990 – 1998. Latin America Business Review, 2 (1 – 2): 101 – 18. Available at: http://dx.doi.org/10.1300/J140v02n01_07
[32] Sanchez – Martin, M.E., De Arce, R., and Escribano, G. 2014. Do changes in the rules of the game effect FDI flows in Latin America? A look at the macroeconomic, institutional and regional integration determinants of FDI. European Journal of Political Economy, 34: 279 – 99. Available at: http://dx.doi.org/10.1016/j.ejpoleco.2014.02.001
[33] Subasat, T., and Bellos, S. 2013. Governance and foreign direct investment in Latin America: A panel gravity model approach. Latin American Journal of Economics, 50 (1): 107 – 31.
[34] Trevino, L.J., and Mixon, Jr. F.G. 2004. Strategic factors affecting foreign direct investment decisions by multi – national enterprises in Latin America. Journal of World Business, 39 (3): 233 – 243. Available at: http://dx.doi.org/10.1016/j.jwb.2004.04.003
[35] Tuman, J.P., and Emmert, C.F. 1999. Explaining Japanese foreign direct investment in Latin America, 1979 – 1992. Social Science Quarterly, 80 (3): 539 – 55. Available at: http://dx.doi.org/10.1177/106591290105400105
[36] Urrunaga, R., and Aparicio, C. 2013. Infrastructure and economic growth in Peru. Cepal Review, 107: 145 – 163.
[37] Van Parys, S. 2012. The effectiveness of tax incentives in attracting investment: Evidence from developing countries. Reflets et Perspectives de la Vie Economique, 51 (3): 129 – 141. Available at: http://dx.doi.org/10.3917/rpve.513.0129
[38] Xu, X. 2010. China’s outbound energy FDI and cooperation with Canada. Geopolitics of Energy, 32 (4): 6 – 10.
[39] Zegarra, L.F. 2013. Transportation costs and the social savings of railroads in Latin America. The case of Peru. Revista de Historia Economia – Journal of Iberian and Latin American Economic History, 31 (1): 41 – 72. Available at: http://dx.doi.org/10.1017/S0212610913000013
Published
2016-12-31
How to Cite
METAXAS, Theodore; KECHAGIA, Polyxeni.
FOREIGN DIRECT INVESTMENT IN LATIN AMERICA: THE CASE OF PERU.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 7, n. 2, p. 160-173, dec. 2016.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/1265>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.14505/tpref.v7.2(14).05.
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