The central question tackled here is that of the desirability of foreign direct investment over other flows, such as bank lending. There has been an undoubted rise in FDI flows as a proportion of all flows to the Latin American region, but how much of the cause is supply- or demand-driven remains unclear. Analyses presented in this volume appear to demonstrate that FDI is no better and no worse than other flows for growth and for crisis resistance and, in some cases, may even be a signal of an economy's ill health. Contrary views, however, are also presented. Where governments compete for FDI, it is widely believed that they participate in a so-called "race to the bottom", lowering labour, environmental and other standards. The surprise here is that this fear is so far largely unfounded. The book also includes a glimpse of a round table discussion on these issues with private-sector participants. The Inter-American Development Bank and the OECD Development Centre created the International Forum on Latin American Perspectives as an annual meeting place of ideas and strategies from Latin America and from the OECD region. The eleventh edition of the Forum was held in Paris in November 2000 and this book contains contributions and analysis from that meeting.
Table of Contents
- Preface : Jorge Braga de Macedo and Enrique V. Iglesias - - - - - 7
- Introduction : Eduardo Fernández-Arias, Colm Foy and Helmut Reisen - - - - - 9
Foreign Direct Investment: Good Cholesterol?
- Ricardo Hausmann and Eduardo Fernández-Arias - - - - - 19
- A Comment by Stefano Manzocchi - - - - - 51
- A Comment by Helmut Reisen - - - - - 55
The Perils of Competition for Foreign Direct Investment
- Charles P. Oman - - - - - 63
- A Comment by John Evans - - - - - 85
- A Comment by Eduardo Fernández-Arias - - - - - 89
Capital Inflows and Crisis: Does the Mix Matter?
- Eduardo Fernández-Arias and Ricardo Hausmann - - - - - 93
- A Comment by Beatrice Weder - - - - - 111
- A Comment by Philip Turner - - - - - 113
Will the FDI Boom Bring More Growth?
- Ricardo Hausmann and Patricia Cortés - - - - - 117
- A Comment by Daniel Cohen - - - - - 141
- A Comment by Peter Nunnenkamp - - - - - 143
THE VIEW FROM THE CORPORATE SECTOR
- Preliminary Remarks: Enrique V. Iglesias - - - - - 149
- A Summary of the Discussions: Colm Foy - - - - - 151
- Business Activity Is a Factor: Antonio Estrany-Gendre - - - - - 153
- Global Markets, Local Institutions: Frans van Loon - - - - - 155
- "Reform Fatigue" Must Be Overcome:Carlos Hurtado Lopez - - - - - 157
- The Globalisation of Business Can Be Good for Development: Douglas C. Worth - - - - - 159
Conclusions to the Forum : Jorge Braga de Macedo - - - - 161
Programme: - - - - - 167
List of Authors and Participants: - - - - - 173
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ASBN : 92-64-18645-X