A look at inward foreign direct investment (FDI) transactions for Barbados

Foreign exchange is the lifeblood of the Barbadian economy while employment generation leads to a higher revenue intake through taxes. With additional tax revenue, government is placed in a better position to spend more funds to improve the countryÂ’s infrastructure. The paper identifies those countries that have provided Barbados with the majority of its FDI over the years. Finally, using cointegration analysis, this paper examines the long and short run determinants of FDI inflows into Barbados for the period 1970-2003