The relation between the foreign direct investments and the economic security in Latin America
Abstract
The main objective of the article is to analyse the economic security understood as macroeconomic stability through the following variables: the ratio of foreign direct investment in Latin America with the value of the corruption index, the GINI coefficient and the Gross Domestic Product. The hypothesis is that the higher the GINI coefficient is and lower is the score in the ranking of corruption index according to Transparency International, the country receives greater investment and greater is his level of economic security, even if is not the only condition. We demonstrate empirically, trough econometric analyses, that there is a strong correlation between the mentioned variables in the case of Latin America countries, emphasis on extreme cases of Uruguay and Venezuela and the more moderate of Mexico and Brazil. As far as we know there is no study for Latin American countries, regarding economic security issues, using this methodology, where finally the hypothesis for all the mentioned countries is confirmed.
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