Abstract:
The article analyzes some additional issues related to foreign direct investment (FDI) and to the development of regional integration agreements (RIA). The formation of a regional integration agreement can imply more extra regional investment for the region as a whole but this does not mean more FDI in each member of the RIA. FDI may have an unequal distribution across countries that form the regional agreement. Within a RIA there may be winners and losers, in terms of the amount of FDI received for each country. This article looks at what determines whether a particular country is called a winner or loser.