You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution Columbia Center on Sustainable Investment Remove constraint Publishing Institution: Columbia Center on Sustainable Investment Political Geography Latin America Remove constraint Political Geography: Latin America Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Publication Year within 25 Years Remove constraint Publication Year: within 25 Years Topic Foreign Direct Investment Remove constraint Topic: Foreign Direct Investment
- Author: Graciana del Castillo, Daniel García
- Publication Date: 08-2012
- Content Type: Working Paper
- Institution: Columbia Center on Sustainable Investment
- Abstract: An analysis of trends in foreign direct investment (FDI) in Uruguay is difficult due to data problems. Nevertheless, balance-of-payments data reveal that inward FDI (IFDI) increased sharply in the second half of the decade 2002-2011 under analysis. IFDI flows relative to GDP rose annually on average to close to 6% in 2005-2011. This compares favorably with annual average flows of only 1% in the decade before the banking crisis and the sharp devaluation of the Uruguayan peso in 2002. At the time, investment in natural resources, including in farmland and real estate in Punta del Este, became very attractive. IFDI flows peaked at 7.5% of GDP in 2006, with the investment in the construction of the first cellulose plant in the country by a multinational enterprise (MNE) from Finland. The rapid increase in IFDI in the second half of the past decade took place amid high rates of economic growth (averaging about 6% a year on average), in combination with an adequate policy and regulatory framework and fiscal incentives to foreign investors. So far, Uruguay remains primarily a host country for FDI, with outward FDI (OFDI) that has been and continues to be insignificant.
- Topic: Development, Economics, International Trade and Finance, Foreign Direct Investment
- Political Geography: Latin America