Everton Dias Medeiros

In recent years, especially since the 1990s, there has been a significant increase in foreign direct investment (FDI) in the countries of Latin America. In this context, the multinational companies (MNCs) of the United States of America stand out as the main investors in Latin America and in the world. According to this situation, this study aims to analyze empirically the determinants of US FDI in Latin America, in particular, to verify the influence of institutional factors on their attraction. In order to achieve this objective, econometric analysis uses static and dynamic panel data and covers 16 Latin American countries in the period 2002-2016. The results indicate that the stock of lagged FDI, market size and trade liberalization are important determinants for attracting US FDI to Latin America. Institutional factors related to the stability and effectiveness of government and the regulatory quality of markets are relevant determinants for the attraction of this form of investment to the countries analyzed.