On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014
The aim of this work is to identify whether there was a relationship between foreign direct investment (FDI) and long-term growth in Latin America from 1990 to 2014. Some authors have questioned whether FDI and other capital flows, besides current account results, could constrain economic growth. If...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Associazione Economia civile
2019-09-01
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| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/15694/15077 |
| _version_ | 1818582397598302208 |
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| author | Douglas Alencar Eduardo Strachman Lúcio Otávio Seixas Barbosa Cláudio Alberto Castelo Branco Puty |
| author_facet | Douglas Alencar Eduardo Strachman Lúcio Otávio Seixas Barbosa Cláudio Alberto Castelo Branco Puty |
| author_sort | Douglas Alencar |
| collection | DOAJ |
| description | The aim of this work is to identify whether there was a relationship between foreign direct investment (FDI) and long-term growth in Latin America from 1990 to 2014. Some authors have questioned whether FDI and other capital flows, besides current account results, could constrain economic growth. If FDI and other capital flows are staunched and this is accompanied by capital outflows originated from FDI in previous periods, then it would be possible to experience a balance of payments constraint to economic growth. To test this hypothesis, we slightly amend the Thirlwall and Hussain model and employ the McCombie test for the cases of Brazil, Mexico, and Argentina. We find that the negative effect of primary income remittances on FDI, and even capital inflows through FDI, may curbs growth in the long run. |
| first_indexed | 2024-12-16T07:48:44Z |
| format | Article |
| id | doaj.art-558877cc155b43cfafaa0b8f6f6f6b05 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-12-16T07:48:44Z |
| publishDate | 2019-09-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-558877cc155b43cfafaa0b8f6f6f6b052022-12-21T22:38:54ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432019-09-0172290207221https://doi.org/10.13133/2037-3643_72.290_3On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014Douglas AlencarEduardo StrachmanLúcio Otávio Seixas BarbosaCláudio Alberto Castelo Branco PutyThe aim of this work is to identify whether there was a relationship between foreign direct investment (FDI) and long-term growth in Latin America from 1990 to 2014. Some authors have questioned whether FDI and other capital flows, besides current account results, could constrain economic growth. If FDI and other capital flows are staunched and this is accompanied by capital outflows originated from FDI in previous periods, then it would be possible to experience a balance of payments constraint to economic growth. To test this hypothesis, we slightly amend the Thirlwall and Hussain model and employ the McCombie test for the cases of Brazil, Mexico, and Argentina. We find that the negative effect of primary income remittances on FDI, and even capital inflows through FDI, may curbs growth in the long run.https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/15694/15077capital flowseconomic growthexternal constraint |
| spellingShingle | Douglas Alencar Eduardo Strachman Lúcio Otávio Seixas Barbosa Cláudio Alberto Castelo Branco Puty On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 PSL Quarterly Review capital flows economic growth external constraint |
| title | On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 |
| title_full | On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 |
| title_fullStr | On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 |
| title_full_unstemmed | On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 |
| title_short | On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014 |
| title_sort | on foreign direct investments and the balance of payments constrained growth model in latin america 1990 2014 |
| topic | capital flows economic growth external constraint |
| url | https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/15694/15077 |
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