Evaluating the policies to attract FDI: the case of the central american power sector

Policies to attract FDI have changed significantly during the 80’s. The primary
objective of this change was developing in the countries the most favourable
conditions to attract FDI. For this reason, one of the most innovative feature
of these new policies is the liberalization and privatization of the services. This
is especially important because while offshoring processes were present in
industrial activities since the end of the Second World War, it was not the case
of the services sector. Therefore, policies to attract FDI led to the international
expansion of a few firms, particularly from America and Europe.
The objective of this paper is to analyze the results of these policies in
the countries receiving the FDI, especially in the case of developing countries,
because FDI was considered to play an important role in their development strategy.
María José Paz Antolín
Antonio Sanabria Martín
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