Foreign Direct Investment in Latin America and the Caribbean 2009

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Foreign Direct Investment in Latin America and the Caribbean 2009

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Foreign Direct Investment in Latin America and the Caribbean 2009
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ISBN: 9789211217384
Sales Number: 10.II.G.4
Binding: Paperback
Publisher: United Nations, Economic Commission for Latin America and the Caribbean


Due to the global crisis, in 2009 Foreign Direct Investment flows to the Latin America and the Caribbean region shrunk by 42% with regard to the historical record of in 2008.

This decrease is explained by a combination of factors: a fall in world production, prevailing uncertainty and the deceleration of growth in several countries of the region, which discouraged oreign Direct InvestmentI in search of local markets. In addition, falling commodity prices in late 2008 warded off investment in the exploitation of these resources, while the recession in North America restrained investment in export platforms.

Foreign Direct Investment in Latin America and the Caribbean 2009 notes that most announced Foreign Direct Investment in manufacturing continues concentrated in low and medium-low technology intensive activities, while Foreign Direct Investment in high-tech sectors and research and development projects is still scarce.

This reveals that two decades after Foreign Direct Investment flows were liberalized, the region still has difficulties attracting high-technology investment and participating in high value-added links in global production chains. The report suggests policies for productive development focused on innovation and strengthening local capabilities.






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