In this paper, we examine how the business and interest rate cycles in developed countries affect FDI to developing countries. After aggregating flows into three big source areas (the U.S., Europe and Japan), we find FDI flows to be countercyclical with respect to both output and interest rate...

In this paper we estimate the early effect of the European Monetary Union (EMU) on trade. We use a panel data set that includes the most recent information on bilateral trade for 22 developed countries from 1992 through 2002. During this period 12 European countries formally entered into a...

Recent literature has emphasized the importance of transport costs and infrastructure in explaining trade, access to markets, and increases in per capita income. For most Latin American countries, transport costs are a greater barrier to U.S. markets than import tariffs. The authors investigate...

The relevance of transport costs has increased as liberalization continues to reduce artificial barriers to trade. Is it worthwhile to implement policies designed to increase competition in transport markets? Focusing on air transport, this paper quantifies the effects of liberalization of air...

The relevance of transport costs has increased as liberalization continues to reduce artificial barriers to trade. Is it worthwhile to implement policies designed to increase competition in transport markets? Focusing on air transport, this paper quantifies the effects of liberalization of air...

The role of regional integration agreements (RIAs) as a determinant of the location of Foreign Direct Investment (FDI) has become an increasingly relevant issue for emerging economies. While the concerns regarding the impact of RIAs on FDI for countries in Latin America may be related to a...

In this paper, the authors discuss in detail a number of channels through which RIA could affect the location of FDI. In addition to clarifying the main effects at play, this conceptual discussion should help lay down a roadmap for the empirical exercises that follow. First, a brief stylized...

The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a...

The role of regional integration agreements (RIAs) as a determinant of the location of Foreign Direct Investment (FDI) has become an increasingly relevant issue for emerging economies. While the concerns regarding the impact of RIAs on FDI for countries in Latin America may be related to a...

This presentation discusses the effects of the Free Trade Area of the Americas (FTAA) on foreign direct investment (FDI). In particular, the inflow of FDI from the United States and Canada towards Latin American countries is discussed along with an analysis of the role of regional integration...