Japanese Direct Investment in Latin America in the Nineties

Eduardo Kiyoshi Tonooka
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Eduardo Kiyoshi Tonooka: Research Institute for Economics & Business Administration (RIEB), Kobe Universty, Japan

No 118, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper investigates the determinants of Japanese foreign direct investment (FDI) in Latin America. The analysis considers eleven countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela) and covers the 1980-1997 period. Empirical findings indicate that market size, bilateral commercial ties, and relative labour costs are important economic factors explaining the Japanese FDI in the region. Additionally, the relevance of institutional factors on FDI decisions is corroborated by some results concerning the legal structure of the investment host countries.

Keywords: Foreign Investment; Market; Comparison (search for similar items in EconPapers)
JEL-codes: F21 O54 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2001-02
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:118

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