How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile
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In today’s world, Mexico and Chile are nations with growing economic development. Both have different and interesting histories leading to that growth and have had to design in recent years, public policies which contribute to the accumulation of capital. One of the principal sources of capital is the attraction of foreign direct investment – which, starting with its normative aspect – and proceeding to the attraction of investment flows, have had to be modified lately. According to the theory of the creation of new determinants, the probability of improving some determinants will contribute to an increase in attracting foreign direct investment flows to the receiving state. This research demonstrates that once the theory mentioned above has been applied to Mexico and Chile, the results shows that both nations attracted more FDI flows. For the case of Mexico, the skilled labor as well as low cost labor, tax incentives and natural resources contributed to get more inflows and for the case of Chile, inflows increased because it offers tax incentives, a better legal framework and an industrial policy focus on FDI to international investors. It is also remarkable that in both cases, they use regularly other determinants to attract FDI such as infrastructure, gross domestic product, geographical location, and the like.
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Botello, J. C. & Davila, M.. (2016). How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile. Journal of Business and Retail Management Research, Volume 11 Issue 1.
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APA
Botello, J. C. & Davila, M.. (2016). How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile. Journal of Business and Retail Management Research, Volume 11 Issue 1.
MLA
Botello, Juan Carlos, and Martin Davila. "How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile." Journal of Business and Retail Management Research, Volume 11 Issue 1, 2016.
Chicago
Juan Carlos Botello and Martin Davila. "How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile." Journal of Business and Retail Management Research Volume 11 Issue 1 (27 Oct 2016).
Harvard
Botello, J. C. & Davila, M. (2016) How to increase FDI flows: a demonstration of the new determinant creation theory for Mexico and Chile. Journal of Business and Retail Management Research, Volume 11 Issue 1
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