2011 Reports

Inward FDI in Argentina and its policy context, 2011

Caballero, Alicia Inés

Inward foreign direct investment (IFDI) flows to Argentina recorded a substantial increase in the 1990s, when Argentina was one of the main destinations for FDI inflows among emerging markets. Affiliates of multinational enterprises (MNEs) had then major presence in the Argentine economy. After the country's economic crisis that began in 1999 and the subsequent devaluation of the Argentine peso in January 2002, there has been an increasing but fluctuating trend in IFDI flows, affected by changing policies. The recent global crisis of 2008-2009 caused a 50% drop in IFDI flows, followed by a partial recovery in 2010. The variety of resources available — crops, livestock, minerals — constitute an attraction for FDI in Argentina, which could be enhanced with a better investment climate.