Document Type
Article
Publication Date
11-1-2016
Abstract
© 2016 Informa UK Limited, trading as Taylor & Francis Group. This article investigates the effect of remittances on U.S. foreign direct investment (FDI) flows to Latin America and the Caribbean (LAC). It covers 26 countries for the period 1983–2010. The results show a positive and significant impact of remittances on U.S. FDI flows. However, this effect depends upon the level of gross domestic product (GDP) per capita of the host country. On average, the results show that increasing remittances by one standard deviation increases U.S. FDI flows by 0.44 percent a year. Also, host country demand positively affects U.S. FDI flows, which supports the market size hypothesis.
Publication Source (Journal or Book title)
Applied Economics
First Page
5008
Last Page
5021
Recommended Citation
Garcia-Fuentes, P., Kennedy, P., & Ferreira, G. (2016). U.S. foreign direct investment in Latin America and the Caribbean: a case of remittances and market size. Applied Economics, 5008-5021. https://doi.org/10.1080/00036846.2016.1170931