The course of U.S. private investment in Latin America since the rise of Castro

by Leland Johnson

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The rise of Castro in Cuba and the spread of his influence in other countries have generated concern that the overall private investment climate in Latin America has deteriorated, that private capital flows from the United States will continue to fall, and that the goals set in the Alliance for Progress for foreign private investment will not be met. This study is concerned, first, with investigating the pattern of investment flow in recent years. Second, it treats several possible explanations for the pattern that does emerge from the empirical analysis. Third, it relates this analysis to the role of U.S. private investment in the Alliance for Progress. The statistical analysis discloses that little if any decline in aggregate direct investment has taken place in recent years.

This report is part of the RAND Corporation Research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

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