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dc.titleBoosting Foreign Direct Investment through Strategic Reforms
dc.contributor.authorRossi, José Luiz
dc.contributor.authorTeixeira Rios, Heron Marcos
dc.contributor.orgunitCountry Department Southern Cone
dc.coverageBrazil
dc.coverageSouthern Cone
dc.date.available2025-07-18T00:07:00
dc.date.issue2025-07-18T00:07:00
dc.description.abstractThe main objective of this study is to analyze the relevance of economic and institutional factors in shaping the dynamics of Foreign Direct Investment (FDI). To this end, several econometric analyses are conducted to examine the determinants of FDI inflows. The results indicate that, across a panel of countries, factors such as market size, exchange rate policy, the degree of trade openness, and the quality of public governance including political stability, adherence to the rule of law, government efficiency, and regulatory quality are decisive for attracting foreign capital. In the specific case of Brazil, the study reveals that both domestic and external factors significantly influence capital inflows. GDP growth, a more appreciated exchange rate, greater openness to international trade, macroeconomic stability, and a more developed financial market with improved access to credit constitute fundamental elements for attracting international investors. Furthermore, a favorable external environment, particularly in periods of buoyant global stock markets, also contributes to increased capital flows to the country.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0013605
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Boosting-Foreign-Direct-Investment-through-Strategic-Reforms.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectForeign Direct Investment
dc.subjectExchange Rate
dc.subjectDebtor Finance
dc.subjectCapital Flow
dc.subjectGross Domestic Product
dc.subjectSmall Business
dc.subjectProductivity
dc.subjectProductivity Growth
dc.subject.jelcodeF21 - International Investment • Long-Term Capital Movements
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeF41 - Open Economy Macroeconomics
dc.subject.keywordsForeign Direct Investment;Capital flows;reforms
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-03173
idb.operationBR-T1629
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