Model
Digital Document
Publisher
Florida Atlantic University
Description
This thesis analyzes the impact of transnational corporate
investment patterns in five Latin American economies:
Mexico, Peru, Columbia, Venezuela, and Brazil. Two important
theories attributed to the dependencia and neoconventional
schools of thought are first described and then econometrically
tested for the above countries. The basic framework for
econometrically testing these theories consists of a model
specifying the domestic and foreign determinants of domestic
capital formation. Domestic determinants are formulated in
terms of the 'accelerator' and loanable-funds theories of
domestic investment behavior. Investment by multinational
corporations is then added to the model to see if it makes
any significant contribution towards indigenous investment.
In order to take into account the lagged effects of multinational
investment, an Almon lag estimation technique was
adopted.
investment patterns in five Latin American economies:
Mexico, Peru, Columbia, Venezuela, and Brazil. Two important
theories attributed to the dependencia and neoconventional
schools of thought are first described and then econometrically
tested for the above countries. The basic framework for
econometrically testing these theories consists of a model
specifying the domestic and foreign determinants of domestic
capital formation. Domestic determinants are formulated in
terms of the 'accelerator' and loanable-funds theories of
domestic investment behavior. Investment by multinational
corporations is then added to the model to see if it makes
any significant contribution towards indigenous investment.
In order to take into account the lagged effects of multinational
investment, an Almon lag estimation technique was
adopted.
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