Investimento externo direto na América Latina: O papel dos acordos de investimento

Except for Brazil, Latin American countries considerably expanded their bilateral investment treaties (BITs) networks during the 1990s in an attempt to expand FDI inflows. Although the theory on the subject predicts a positive relationship between the inflow of FDI and the conclusion of these agreements, the empirical literature is not conclusive about what impacts TBIs have on FDI, making uncertain the effects that these agreements have had on investment decisions in the region. This article contributes to the literature by analyzing the extent to which these agreements have contributed to the volume of greenfield FDI in Latin American countries. A gravitational model has been estimated for this purpose and the results indicate that for Latin American countries TBIs have no statistically significant effect on FDI. The size of economies, economic growth, trade openness, the similarity in return on capital has explained why this type of FDI has been directed to countries in the region. It was also evident that countries with better regulatory quality attract more FDI. Countries that have ratified most TBI have responded to some claims in arbitration courts have their investment flows reduced. Finally, taking into account sectoral fixed effects, the estimation of the gravitational model suggested that TBIs have no positive effect on investments in the industrial, services and natural resource extraction sectors.