It is widely argued that good governance is an important determinant of foreign direct investment (FDI). With the exception of studies of corruption, however, empirical research on the link between governance and FDI is limited, particularly in the context of Latin America. Moreover, recent...

This paper employs a panel data gravity model to examine the impact of economic freedom (EF) on foreign direct investment (FDI) in the context of Latin American countries. Our results suggest that while FDI responds to many EF measures positively, such results cannot be generalised.