Regional integration and foreign direct investment: the potential impact of the FTAA and the Eu-Mercosur agreement on FDI flows into Mercosur countries

This paper aims at analyzing the potential impact of the FTAA and the EU-MERCOSUR agreement on FDI flows to MERCOSUR, using the results of a gravity model. We conclude that regional integration agreements, in general, induce higher FDI inflows to host member countries. Hence, prima facie this result...

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Autores principales: López, Andrés, Orlicki, Eugenia
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2005
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/164831
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Sumario:This paper aims at analyzing the potential impact of the FTAA and the EU-MERCOSUR agreement on FDI flows to MERCOSUR, using the results of a gravity model. We conclude that regional integration agreements, in general, induce higher FDI inflows to host member countries. Hence, prima facie this result implies that MERCOSUR countries could expect increases in FDI inflows as a result of both agreements under study. However, caution is needed when forecasting the probable magnitude as well as the origins and nature of additional FDI inflows to be received, since our study suggests that the impact of regional integration on FDI may differ according to the nature of the regional agreement, the countries involved and other factors.