Running Hot and Cold: Economic Liberalization and Foreign Direct Investment in Latin America by Sector

This article examines the effects of market–oriented economic reforms on foreign direct investment (FDI) flows to Latin America from 1985 to 2006. In contrast with most existing scholarship, we disaggregate FDI into its destination in the primary resource, manufacturing, and service sectors allowing us to determine that different kinds of investments exhibit distinct behavior. Notably, manufacturing FDI appears to be erratic; previous investment is not a predictor of current investment. FDI across sectors is associated with varying policy environments, with service and primary resource investment attracted to hosts with policies associated with more stable economic and political contexts. Overall, manufacturing FDI appears to function more like “hot” portfolio investment and is less likely to provide some of the positive spillover effects thought to be associated with more permanent FDI. These findings have an array of implications for economic, development, and industrial policies throughout Latin America and the developing world.

Shear bands in metallic glasses are not necessarily hot

We have used the fusible tin coating method to detect shear band heating in amorphous Zr57Ti5Cu20Ni8Al10 loaded under quasi-static uniaxial compression. High-rate load data allowed a precise determination of the duration of shearing events and final fracture. When loading was halted prior to fracture we saw no evidence of melted tin despite the presence of shear offsets up to 6μm on some shear bands. Samples loaded to fracture showed evidence of tin melting near the fracture surface. We attribute the difference to the duration of the events, which is much longer for shear banding (milliseconds) than for fracture (microseconds).