A Multiple Criteria Decision Analysis for the Foreign Direct Investment in The Dominican Republic and Central America Free Trade Agreement DR-CAFTA

The Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) remains an essential driver for attracting foreign direct investment (FDI) in the region. This study focuses on analyzing the factors that influence FDI and the choice of the most attractive country for investment. FDI in DR-CAFTA has experienced notable fluctuations, influenced by global events such as the COVID-19 pandemic and the conflict in Eastern Europe. In 2022, FDI reached US$11.31 billion, marking a decrease of 10.10% from the previous year, following an impressive increase of 83.89% in 2021 according to data from the Economic Commission for Latin America and the Caribbean (ECLAC) (2023) [4]. The choice of investment country has become critical, and to address this, this study employs the Analytic Hierarchy Process (AHP), as a decision-making tool. The results highlight Costa Rica as the leading option over other countries in the region, showing a notable concordance with the rankings of the "GLOBAL OPPORTUNITY INDEX 2021" Focus on Latin America," Contreras et. al. (2021) [21]. This analysis delves into the impact of global events on FDI in the DRCAFTA region, providing valuable guidance supported by rigorous analysis, as well as contributing to the understanding of the dynamics of FDI in this constantly evolving region, helping investors make informed and strategic decisions.