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The Effects Of Foreign Direct Investment On Sovereign Debt Sustainability In Latin America, Oriana I. Fuentes May 2012

The Effects Of Foreign Direct Investment On Sovereign Debt Sustainability In Latin America, Oriana I. Fuentes

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Sovereign debt has been a central political issue in Latin American nations for many years, especially considering the region’s long history of defaults and restructurings. Finding ways to grow sustainably at manageable levels of indebtedness has certainly been a challenge, especially with the large number of factors that play into how a nation finances itself and its growth. One of these factors, foreign direct investment (FDI), has attracted significant attention after countries became more politically stable and protective of investor interests in the early 1990s. As a result, inflows of FDI have grown at record levels reaching over $112 billion …