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Begin New Search Topic Foreign Direct Investment Political Geography Latin America

1. Corruption, FDI, and Trade Freedom Relationship Between Turkey and Latin American Countries

Author:
Alexander Camacho Murcia and E. Murat Özgür
Publication Date:
05-2022
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
Foreign Direct Investment (FDI) has been always associated with a high level of trade openness and freedom environment, and with a lower incidence of institutional corruption. Because it is assumed that a high level of international capital mobility makes foreign investors more cautious when there is a fluctuation in political stability and institutional transparency. Most American countries (except Canada and the USA) have been always related to a lack of transparency in their institutional and bureaucratic procedures, which conduct to important levels of corruption and in consequence, to other serious issues such as prominent level of violence, or even the inequality phenomena. This study investigates whether the variables of corruption indices, trade openness and inflation rates have positive or negative effects on FDI between Turkey and American countries. For analyzing this econometric model, it was gathered information from OECD, COMTRADE, TUIK, Heritage Foundation, UNCTAD, and the World Bank Database. The observed data correspond to a decade (2005-2014) and were only taken a sample of 14 American countries. The empirical results of the present study revealed that there is a positive correlation between the trade openness index and FDI; and, it was found a positive correlation between corruption index, inflation, and FDI. The increase in the corruption index causes a 41% increase in FDI inflow.
Topic:
International Relations, Corruption, Foreign Direct Investment, Economy, Free Trade, and Transparency
Political Geography:
Turkey and Latin America

2. Could a Bridge between the EU and Latin America Boost Innovation “Sovereignty” in a Multipolar World?

Author:
Nicola Bilotta and Alissa Siara
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The economic ramifications of COVID-19 will accentuate the technological innovation gap between Latin America and the rest of the world. In a region already suffering from chronic underinvestment in research and development, the strain placed on government budgets by the pandemic-induced economic crisis will push innovation further back down the agenda. The region has compensated for a lack of domestic resources with foreign capital and technology imports from China and the United States. As the US–China relationship becomes more adversarial in the face of COVID, however, Latin America will emerge as a geopolitical battleground whose countries may be forced to choose sides and potentially lose out on capital inflows or technology imports. Navigating this potential storm will involve the region in a search for other options. Public–private partnerships with European Union firms represent one valuable possibility, but Europe and Latin America should first align their innovation agendas.
Topic:
International Relations, Science and Technology, Sovereignty, Foreign Direct Investment, European Union, Institutions, Coronavirus, and Digital Policy
Political Geography:
China, South America, Latin America, North America, and United States of America

3. China’s Recent Engagement in Latin America and the Caribbean: Current Conditions and Challenges

Author:
Enrique Dussel Peters
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Since the beginning of the 21st century, China’s presence in Latin America and the Caribbean (LAC) has been substantial in practically all socio-economic fields: cultural, bilateral and multilateral political issues, as well as trade, foreign direct investments, academic exchanges, and other areas. The main objective of this document is to analyze the effects of China’s presence in the region in terms of sustainable and long-term development, as well as its incidence in its relationship with the United States. Thus, the document will include a diagnostic to understand some of the specificities of the LAC-China socio-economic relationship, followed by the conclusion with a series of proposals. The first section of the paper will examine five issues that are relevant to understand general and specific topics about the China-LAC relationship: 1) general geostrategic and diplomatic topics to understand current tensions between the United States and China; 2) China’s proposal of a globalization process; 3) the concept of “new triangular relationships” and LAC’s challenges given increasing tensions between the United States and China; 4) particular developments and structures in trade, foreign direct investment, financing and infrastructure; and 5) the institutional framework between LAC and China. The second part of the paper focuses on a series of recommendations attempting to deepen and extend the China-LAC relationship and integrating the United States in it.
Topic:
International Cooperation, Bilateral Relations, Foreign Direct Investment, Culture, and Multilateral Relatons
Political Geography:
China, Asia, Latin America, North America, and United States of America

4. Foreign Investment in Cuba: From Conflict to Resolution

Author:
Rafael-Andrés Velázquez-Pérez, Miguel-Ángel Michinel-Álvarez, Margaret Crahan, and Gabriel Vignoli
Publication Date:
01-2017
Content Type:
Book
Institution:
Institute for Latin American and Iberian Studies at Columbia University
Abstract:
This manuscript originates from research initiated in 2010 at the University of Vigo in International Private Law with a specific focus on International Investment Law. The objective was to analyze the impact of the new paradigm of sustainability on this sphere of the law, with an emphasis on developing countries, and more specifically Cuba. This line of research has resulted in several publications intended for a Spanish-speaking scientific-juridical audience. Yet there is no scholarly work directly aimed at US investors as a prioritized target group. Being the first single Foreign Direct Investor in the world, and given its geopolitical and economic proximity, the US is bound to play a prime role in the field of investments in Cuba—despite political complications. As a consequence, we opted for a bilingual monograph on this topic with a dual purpose. The first part of the book, which is aimed at reaching a wide audience, examines the role played by foreign investment in Cuba and the country’s interest in attracting it by providing investors with a modern, stable, and coherent legal framework that is in line with current international standards. The second part of the book delves into specific technicalities of international investment law— with an emphasis on the conflict resolution system, which finds in arbitrage its main mechanism. This part, technical in nature, is not directly aimed at potential investors as much as their legal advisers, legal firms, arbitrators, and specialized scholarly communities—without whose input the success of foreign direct investment would be impossible. The text also engages critically with the specificities of US-Cuba relations in the context of Foreign Direct Investment. As shown in the first part of this monograph, it seems clear that the strategies pursued by different US administrations have thus far failed. It would be to the US’ benefit to forego the current policy of confrontation in favor of one of cooperation, as exemplified by the approaches taken by Latin America, xiv Europe, and Canada. The US should not lag, if it wants to attain a strategic position in the global repositioning toward the developing Cuban market. There is a need for targeted diplomatic and legislative efforts aimed at strengthening cooperation between the two countries in terms of investment. Among the challenges is the absence of a Bilateral Investment Treaty (BIT) between Havana and Washington. The obstacles faced by the Trump administration in the political, diplomatic, and financial sphere indicate that excessive isolationism and protectionism are not only counterproductive from a financial viewpoint, but they also imply for the US a loss of sovereignty and a diminished capacity to influence the international context. Should the US not change its current policy, it will be outperformed by other international actors such as the European Union and the BRICS (Brazil, Russia, India, and China) as investors in Latin America and in Cuba.
Topic:
Treaties and Agreements, Bilateral Relations, Foreign Direct Investment, Law, Economy, and Legislation
Political Geography:
Cuba, Latin America, Caribbean, and United States of America

5. A High-Carbon Partnership? Chinese-Latin American Relations in a Carbon-Constrained World

Author:
Timmons Roberts and Guy Edwards
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
China's rapidly increasing investment, trade and loans in Latin America may be entrenching high-carbon development pathways in the region, a trend scarcely mentioned in policy circles. High-carbon activities include the extraction of fossil fuels and other natural resources, expansion of large-scale agriculture and the energy-intensive stages of processing natural resources into intermediate goods. This paper addresses three examples, including Chinese investments in Venezuela's oil sector and a Costa Rican oil refinery, and Chinese investment in and purchases of Brazilian soybeans. We pose the question of whether there is a tie between China's role in opening up vast resources in Latin America and the way those nations make national climate policy and how they behave at the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. We focus on the period between the 2009 Copenhagen round of negotiations and the run-up to the Paris negotiations scheduled for 2015, when the UNFCCC will attempt to finalize a successor agreement to the Kyoto Protocol.
Topic:
Agriculture, Development, International Trade and Finance, Oil, Natural Resources, and Foreign Direct Investment
Political Geography:
China and Latin America

6. Latin America's Changing Global Connections

Author:
Leani García
Publication Date:
04-2014
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
There's no denying it; whether it's share of trade or percent of foreign direct investment (FDI) in the hemi sphere, the U.S.' economic presence has decreased. Even when the U.S. didn't slip a place in terms of a trade partner, its overall share of countries' imports or exports declined across the board, while other countries' increased—especially China's. In the same period, in Argentina and Brazil, the share of U.S. FDI declined by 22% and 27%, respectively.
Topic:
Economics and Foreign Direct Investment
Political Geography:
Brazil, Argentina, and Latin America

7. Sergio Cabral Filho, former Governor of Rio de Janeiro, Brazil

Author:
Sergio Cabral Filho
Publication Date:
05-2014
Content Type:
Video
Institution:
Columbia University World Leaders Forum
Abstract:
This World Leaders Forum program, titled "Rio de Janeiro: from Ostracism to Protagonism" features an address by Sergio Cabral Filho, former Governor of Rio de Janeiro, Brazil. Introduction and Moderated by Lee C. Bollinger, President, Columbia University in the City of New York.
Topic:
Development, Emerging Markets, Political Economy, and Foreign Direct Investment
Political Geography:
New York, Brazil, and Latin America

8. The rise of FDI income, and what it means for the balance of payments of developing countries

Author:
Miguel Pérez Ludeña
Publication Date:
05-2014
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Multinational enterprises (MNEs) multiplied their profits made in developing countries by four between 2002 and 2011 (at current prices). In Latin America and the Caribbean, they rose from US$20 billion in 2002 to US$113 billion in 2011. The growth rate has been even higher in Africa and China, but much lower in developed countries. This rise is explained by an increase in FDI stock in developing economies and the higher average profitability of MNEs.
Topic:
Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Africa, China, and Latin America

9. Regional Integration In Africa: Some Recent Developments And Challenges

Author:
Idris Ademuyiwa and Eberechukwu Uneze
Publication Date:
10-2014
Content Type:
Working Paper
Institution:
Centre for the Study of the Economies of Africa (CSEA)
Abstract:
African countries have been left out of the recent benefits accruing from international trade. For example, they accounted for only 3.2 percent of world trade in 2013 compared to 5 percent in the mid-1960s. Regional integration can reverse this weak performance as it holds the promise for countries to gain from the resultant economies of scale and enhanced competitiveness. It will also help to expand the markets for foreign direct investment.
Topic:
International Trade and Finance, Foreign Direct Investment, Regional Integration, Trade, and Trade Policy
Political Geography:
Africa and Latin America

10. Is Chinese FDI pushing Latin America into natural resources?

Author:
Miguel Pérez Ludeña
Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Chinese foreign direct investment (FDI) in Latin America is a recent phenomenon. Although the China National Petroleum Corporation and other companies have been present in Peru, Ecuador and Venezuela since the early 1990s, large projects have been pursued only since 2006, following an extended period of high commodity prices. The Economic Commission for Latin America and the Caribbean (ECLAC) estimated that there were US$ 15 billion of Chinese FDI inflows into Latin America in 2010, 90% of which were in extractive industries. This further contributed to the already high percentage of Chinese FDI flows to the region that are in natural resources. At a time of high economic growth fueled by commodity exports and strong currency appreciation (particularly in Brazil), FDI into extractive industries strengthens the region's specialization in primary products at the expense of manufacturing and other activities.
Topic:
Economics, International Trade and Finance, Markets, Natural Resources, and Foreign Direct Investment
Political Geography:
China, Brazil, Latin America, and Peru