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  • Thumbnail for Foreign direct investment in Latin America : examining differences between high, middle, and low income nations from the period 2005-2012
    Foreign direct investment in Latin America : examining differences between high, middle, and low income nations from the period 2005-2012 by Brown, Molly Ruth

    The main focus of this study is to examine factors that impact foreign direct invest based on differences in development of Latin American nations. Twenty-one countries are divided into low, middle, and high income groups based on wealth. All econometric tests are conducted for each individual economic subgroup. A random effects model is used to analyze the data. The study finds that there is a great deal of correlation between dependent and independent variables at the low level, less correlation at the middle level, and very little correlation at the high-income level. These results show that variables have different explanatory power based on how wealthy a nation is suggesting development effects a corporation’s decision to invest.