2010 Reports

Inward FDI in Chile and its policy context

Alatorre, José Eduardo; Razo, Carlos

At the time when many countries were following inward looking economic policies in the 1970s, Chile turned outward and sought foreign direct investment (FDI) as a part of its development strategy. Today, the country has the third largest FDI stock in Latin America, only behind the region's two largest economies. Chile has undertaken various policy efforts to use FDI to promote export diversification, encourage technology transfer and upgrade the country's production capabilities. As a result, Chile has attracted firms operating in more knowledge intensive sectors.