An analysis of the correlates of U.S. foreign direct investment in Latin America

Utilizing the most recent data available from a variety of sources, a spreadsheet has been constructed that displays statistical data for nineteen Latin American nations. The compilation of this data array of itself makes an important contribution to the literature. Using stepwise regression, the relative contribution of market related, demographic, cultural, and political variables to US Foreign Direct Investment (FDI) locational decisions are analyzed. The resulting parsimonious model is subsequently validated using 1993 data. The results indicate that the FDI decision is complicated, containing variables of a political, market, and social nature.