FDI influx into Argentina was reduced by half in 2009 under the effect of the global economic recession, they started to recover again in 2010; however, in 2013 the FDI inflows were strongly reduced again. Argentina ranks 4th amongst the South American countries in terms of FDI stocks (after Brazil, Chile and Colombia) and 6th in terms of FDI influx. The three main investors in Argentina are the United States, Spain and France. Argentina has certainly strong assets: its natural resources are considerable (copper, gas and oil) and its workforce is highly-skilled and competitive. However, it suffers from a disastrous image conveyed by the country during the economic crisis of late 1990s and early 2000. Restrictions have been placed on FDI in the agricultural sector, which is strategically important for the country's food security, and the more recently implemented measures (a restrictive property law, nationalizations in the energy sector which have affected the Spanish oil giant Repsol) could discourage potential investors. According to the World Bank, between 2012 and 2013 the country's business climate was deteriorated, it went down five places in the classification Doing Business (it ranked 126 out of 189 countries in 2013).
|Argentina||Latin America & Caribbean||United States||Germany|
|Index of Transaction Transparency*||6.0||4.0||7.0||5.0|
|Index of Manager’s Responsibility**||2.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||4.7||5.0||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||10,720||12,116||9,082|
|FDI Stock (million USD)||96,029||103,158||112,349|
|Performance Index*, Ranking on 181 Economies||94||-||-|
|Potential Index**, Ranking on 177 Economies||14||-||-|
|Number of Greenfield Investments***||153||79||88|
|FDI Inwards (in % of GFCF****)||10.6||11.7||8.5|
|FDI Stock (in % of GDP)||21.4||21.6||23.0|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: December 2014