Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1597
The growing interest of Brazilian companies in the Argentine market has attracted the attention of the both economies on the implications and the reasons behind of this phenomenon. Recent data show a marked increased tendency flow of foreign direct investment (FDI) in Brazil toward the neighboring country, either through new production facilities or by resources for mergers and acquisitions of local companies. In 2008, Brazil recorded an increase of 43% of investment sent to Argentina and since 2005 has accounted for more than 25% of the total amount of foreign capital applied in purchasing of corporations in this country. With this in mind, this text provides some information about the movement of FDI in Latin America and discusses some of its characteristics, showing the recent evolution of these investments mainly in the two mentioned economies. Several reasons, linked mainly to historical conditions placed for companies in the both countries during the 1990s explain the persistence of diametrically opposed positions assumed by Brazil and Argentina at the scene of the regional flows of these capitals.