2010 Reports

Inward FDI in Argentina and its policy context

Nofal, Beatriz; Nahon, Cecilia; Fernandez, Carolina

With a long-standing tradition of an international business presence, Argentina followed an open investment policy since its early stages of development. The most recent wave of foreign direct investment (FDI) growth took place between 2004 and 2008, with investments primarily in the manufacturing, natural resources and new technology sectors. In 2008, inward FDI flows reached US$ 10 billion, positioning the country as a relevant investment destination worldwide. Moreover, with a 50% annual increase, Argentina was one of the ten fastest growing FDI destinations in the world. In 2009, inward FDI contracted due to the global economic crisis in line with the rest of the world.