Efectos de la inversión extranjera directa sobre la inversión en Uruguay

The objective of this paper is to analyze empirically the effects of foreign direct investment (FDI) on investment in Uruguay in a long run perspective (1960-2011). On the basis of varied theoretical and analytic elements, the descriptive analysis and one empirical study with the methodology of investment models and econometrics techniques, I analyze the total effect of FDI on economies capital formation, which are compose to the direct effect, that is the direct impact of FDI on capital accumulation, and the indirect effect, that is the impact of FDI on domestic investment. The last one effect can be positive when crowding in effect between FDI and domestic investment exist, negative if there are crowding out effect to domestic investment, or neutral if the domestic investment not be affected. The main results shows that exist evidence for a positive total effect of FDI on investment composed only by the positive direct effect of FDI, since the indirect effect has been neutral, without crowding in or crowding out effects between FDI and domestic investment in the long run. The positive direct effect can be explained principally by the increase of FDI in the country and its characteristics, while the neutral indirect effect is associate to a different factors likely the low domestic investment and the limited development of linkages or productive chains of multinational corporations to domestic firms.