La mediterraneidad como determinante del flujo bilateral de inversión extranjera directa

The current research analyzes the main variables that explain the bilateral flow's behavior of foreign direct investment. This document is emphasized on the landlocked countries, a geographic variabel which is present in almost 25 percent of all countries. The research is built through a panel data composed by 9,312 bilateral flows corresponding to 97 countries in the period 2001-2012, with a total of 111,744 observations. The estimation is made within the framework of the gravity equation and Dunning's eclectic paradigm. The results have the expected estimates. It was found that landlocked countries lose about 60 percent of their flows of foreign direct investment. The cause of this loss can be explained by the isolation that the geographic characteristic generates. Finally, in a study on Bolivia, it was found that this country loses about 2.22 percent of the Gross domestic product every year because it is landlocked.