Yeyati, Eduardo Levy; Stein, Ernesto H.; Daude, Christian - Inter-American Development Bank - 2003
This paper studies the impact of regional integration agreements (RIAs) on the location of foreign direct investment … favorably to integration. We also find that the increase in the size of the market associated with regional integration … diversion effect. Our results suggest that regional integration, on average, contributes to attracting FDI, but the benefits are …