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FDI in Argentina after the crisis

~Stefan Stoev ~Babawande Afolabi. “The Ever Wavering Tide”. FDI in Argentina after the crisis. Presentation Overview. The Framework Down the Memory Lane The Crisis Post-Crisis FDI after the Crisis Conclusion References. The Framework….

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FDI in Argentina after the crisis

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  1. ~Stefan Stoev ~Babawande Afolabi “The Ever Wavering Tide” FDI in Argentina after the crisis

  2. Presentation Overview • The Framework • Down the Memory Lane • The Crisis • Post-Crisis • FDI after the Crisis • Conclusion • References

  3. The Framework… Even though the Argentine FDI has recovered after the financial crisis, it is still a subject of fluctuations.

  4. Down the Memory Lane… • Pre 1990s • Hyper inflation • Floating exchange rate • Negative GDP growth

  5. Down the Memory Lane… 1989-1999 • Carlos Menem • Convertibility Plan • Curb in Inflation • Increase in FDI inflow • Increase in GDP

  6. Negative account balance Budget Deficit Huge Borrowing External Factors Down the Memory Lane…

  7. The Crisis (2001/2002)… • Default on the outstanding public debt • Increase in unemployment and increased poverty • Lost confidence in the country’s financial system • Reduced FDI

  8. Post Crisis… • Currency floated and Depreciated • Trade deficit turned into surplus • Government deficit turned into surplus • Economic growth reached 9% • FDI picked up

  9. There is still a lack of confidence “What is frustrating isn’t just that the first image of the country has tended to obscure the second, it’s that many foreign economists still are looking for excuses not to acknowledge the success story.” Alfonso Prat-Gay Central Bank President FDI After the Crisis…

  10. FDI after the Crisis • Mounting Shortfall in Gas and Power Production • Speculation about current economic growth • Government controls *www.unctad.org

  11. Concentrated in the Construction industry till 2004 Now concentrated in the Manufacturing industry Increased investment in the energy sector FDI after the Crisis…

  12. Even though the FDI has risen quite beyond the fall of 2001, it’s still contending with inconsistency and gradually lagging behind when compared to fellow Brazilian and Mexican big economies. Conclusion

  13. The Economist, The Economist Intelligence Unit. Retrieved May 30, 2007 from http://economist.com/countries/Argentina Encyclopedia Britannica (2007). Argentina. Retrieved May 30, 2007 from http://search.eb.com/eb/article-9109725 Central bank of Argentina (2007). Monetary Policy. Retrieved May 29, 2007 from http://www.bcra.gov.ar/ Argentine Government (2007). Economy. Retrieved May 29, 2007 from http://www.argentina.gov.ar/argentina/portal/paginas.dhtml?pagina=391 Background notes. Argentina, Retrieved May 29, 2007 from http://www.state.gov/r/pa/ei/bgn/26516.htm Proquest (2007), Investors in Argentina feel burned. Retrieved May 29, 2007 from http://proquest.umi.com/pqdweb Data Processing Information Architects (2007). Argentina FDI. Retrieved May 29, 2007 from http://web.lexis-nexis.com/universe References…

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