Latin America and the Caribbean notched a new historic high in 2013 upon receiving 184.92 billion dollars in foreign direct investment (FDI), 5% more than in 2012 in nominal terms.
In addition to analyzing the global evolution of foreign direct investment flows, the 2013 edition of The Foreign and Direct Investment in Latin America and the Caribbean details the amounts received by Latin American and Caribbean countries in 2013 and presents a regional forecast for 2014. It includes an analysis of the patterns in the origin and destination of these investments.
The sixteenth edition of this report also looks in depth at the effects of foreign direct investment on employment in Latin America and the Caribbean and at the situation of Latin American transnational companies, known as "translatinas."
Global FDI flows climbed 11% in 2013 from the previous year, and Latin American and Caribbean participation in the world's total stayed at 13 %. FDI towards the region has grown steadily since 2003, with the exception of 2006 and 2009, although in proportion to the size of the economies it has remained practically stable since 2011. This growth has been sustained by an increase in domestic demand and high prices for commodities exports.
According to the study, 82% of FDI flows go to the region's six biggest economies, although in relative terms they have more impact in smaller nations, especially those of the Caribbean.
Finally, the study analyzes some effects of FDI on employment, both in terms of quantity and quality of the jobs created.