Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/1019 
Year of Publication: 
1998
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1998
Series/Report no.: 
Kiel Working Paper No. 861
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
Foreign direct investment (FDI) of Germany in Latin America reveals various peculiarities that may shape future investment relations. However, two major concerns are largely unfounded: - In contrast to widespread fears in Germany, FDI outflows are highly unlikely to have added to labor market problems. - Host country concerns that the Eastern enlargement of the EU may divert German FDI away from Latin America seem to be unjustified. German investors have responded relatively weakly to new investment opportunities in Latin America. Some of the traditional features of German FDI in this region, notably the predominant orientation towards large local markets, may work against closer investment relations in the era of globalization. Much depends on whether Latin American host countries succeed in improving international competitiveness in industries in which German FDI is concentrated.
JEL: 
F21
Document Type: 
Working Paper
Document Version: 
Digitized Version

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