COMPETITIVE FACTORS AFFECTING INTERNATIONAL DIRECT INVESTMENTS IN BRAZIL

ABSTRACT

Purpose:

To explore, describe and explain the relationship between the disposition of an international investor to invest in Brazil and the country´s competitive environment, in order to identify the existing relevant factorswhich stimulate investments.

Originality/gap/relevance/implications:

It states in the fact that it applies a multivariate analysis in order to establish and explain the relationship among several quantitative variables.

Key methodological aspects:

The identification of such relations came from the application of a canonical analysis between the FDI as inbound flow and accumulation, and a series of explicative variables, representative of the Brazilian competitive environment. The data from 1997 to 2011 came from national and international sources.

Summary of key results:

The output shows a strong correlation between the FDI in Brazil and some indicators of the country's competitive environment.

Key considerations/conclusions:

We established a strong correlation between the FDI and the Brazilian competitive environment, demonstrated through the two canonical functions generated. The relevant explicative variables which stimulated FDI in Brazil are the well-being of the society, the labor productivity and the imports. The paper offers a simple tool for the previous analysis of the process of the decision making regarding investment.

KEYWORDS
Competitive environment; Competitiveness; Foreign direct investment; International productive investment; Productivity