INVESTIMENTO DIRETO ESTRANGEIRO E IMPACTOS DA ALCA: UMA ANÁLISE EMPÍRICA

This paper evaluates the main determinants of the American Foreign Direct Investment (IDE) flows throughout the recent period. We estimate a gravity model for testing the hypothesis that transnational corporations' decisions concerning IDE are influenced by the sector of activity to which they direct their investment (manufacturing or services). In addition, it is verified whether geographic determinants (like the distance between GDP and host countries) and the host country's decision to take part in schemes of economic integration influence or not IDE flows. We also test the hypothesis that the regional location of destination country affects the flows directed to different sectors. Finally, we use our model to simulate the effects of a hypothetical Brazilian and Argentine decision to join the ALCA process on the IDE flows.