6. The well-known Decision 24 of the Andean Investment
Code, instituted in 1970-71, prohibited payments of royalties
and license fees from wholly-owned affiliates to parents.
If implemented strictly, this rule would have meant that the
LICENSE variable had been equal to zero for Bolivia,
Colombia, Ecuador, Peru, and Venezuela. The number of
exceptions has been large, however, and there did not seem to
be any significant differences in the use of royalties and
license fees between these countries and the rest ofLatin
Americaintheearly1980s.SeeGrosse(1989),pp.113-131.