This paper discusses the performance of foreign direct investment in Brazil between 1980 and 1994, a period highlighted by high inflation in the economy. Following the methodology originally developed by CASTRO (1979) and POSSAS (1983) the article presents the evolution of FDI in the country as a reflection of domestic and international conditions. Based on this approach, the authors argue that during the 1980s these conditions were not conducive to the expansion of FDI in Brazil. In addition, this period marks an important transition in the role and sector composition of FDI, at the same time as critical economic, technological and political changes, from both a Brazilian and international perspective, were taking place.
Brazilian economy; Foreign Direct Investment; High inflation
