THE RESULTS OF THE POLICIES TO ATTRACT FOREIGN DIRECT INVESTMENT IN LATIN AMERICAN AND THE CARIBBEAN: THE CASE FOR DOMINICAN REPUBLIC

Abstract

This paper sets out to study the evolution and main results of Foreign Direct Investment (FDI) in Dominican Republic over the past three decades, in the context of a more complex global scenario characterised by new emergent actors, trade disputes, strong uncertainties stemming mainly from the world financial crisis and the pandemic, the geographical and functional reconfiguration of global value chains, and the industry 4.0. To check the hypothesis derived from the theoretical framework a correlation analysis, gravity equations, and a significance analysis are used. Among the main findings deriving from this work are: return on investments has showed a decreasing trend; there are causal relationships between FDI and GDP; the level of FDI generates a significantly positive impact on Dominican balance of payments; and the share of medium and high-tech manufactures of free trade zones exports has increased although technological improvements have not yet had any operational impact.

https://doi.org/10.3232/GCG.2022.V16.N2.02
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