A look at Chilean economic development from the perspective of foreign investors

Authors

  • Daniel Omar Viera Castillo Universidad Católica del Norte,Arica,Chile
  • Mario Alonso Flores Loredo Universidad de Tarapacá de Chile

DOI:

https://doi.org/10.22451/5817.ibj2024.vol7.2.11084

Abstract

The study of economic development continues to be of interest given the relevance it has for the well-being of the inhabitants of nations.

The investment dimensions that foreign investors take into account when deciding to locate in a country is an issue of great relevance for the receiving country, knowing the factors that said investors have considered as a receiving country of foreign direct investment (FDI). However, it is evident that the choice of the destination country of the FDI may be conditioned by factors related to the development reached by the destination country. This study intends to relate the determinants of the location with the level of development reached by the country of destination of the SDI, for these effects the work is based on the model of the development trajectory of the SDI (Dowrick and Gemmell, 1991). .

As a result of this study, it was possible to identify which factors such as infrastructure and legal aspects are the factors that best explain the investment decisions to invest in Chile and that, according to the FDI development trajectory model, Chile could be considered as a intermediate developing country, characteristic of emerging countries to the year 2010, which is the year in which the study is carried out.

Downloads

Download data is not yet available.

Author Biographies

Daniel Omar Viera Castillo, Universidad Católica del Norte,Arica,Chile

Doctor en Dirección y Organización de Empresas. Profesor Titular de la Escuela Universitaria de Administración y Negocios de la Universidad de Tarapacá en Arica, Chile. Su profesión es Ingeniero Comercial de la Universidad Católica del Norte y posee los siguientes grados académicos: Master en Economía y Master en Ingeniería Industrial, de la Universidad de Los Andes de Colombia. Doctor en Dirección y Organización de Empresas de la Universidad Rey Juan Carlos de Madrid. Su experiencia profesional incluye muchos años como miembro de directorio, gerente, asesor y consultor especializado en empresas de diverso tipo en Chile, Perú y Colombia. Arica, Chile.

Mario Alonso Flores Loredo, Universidad de Tarapacá de Chile

Ingeniero Electrónico

·        Ingeniero Industrial

·        Master en dirección de empresas MBA

·        Doctor en ciencias de la Educación

References

Caves RE (1971a) Industrial organization: In: John H. Dunning (ed.). Economic Analysis and the Multinational Enterprise. Praeger, New York: 115-146.

Caves RE (1974b) Causes of foreign direct investment: Foreign firms’ shares in Canadian and United Kingdom manufacturing industries. Review of Economics and Statistics 56: 279-293.

Dowrick S, Gemmell N (1991) “Industrialisation, catching up and economic growth: a comparative study across the world’s capitalist economies. Economic Journal 101(405): 263-75.

Narula R, Dunning JH (2000) Industrial development, globalization and multinational enterprises: new realities for developing countries. Oxford Development Studies 28(2): 141-167.

Galán J, González J, Zuñiga-Vicente J (2007) Factors determining the location decisions of Spanish MNEs: an analysis based on the investment development path. Journal of International Business Studies 38(6): 975-997.

Hymer SH (1960) The International Operations of National Firms: A Study of Direct Foreign Investment. Doctoral dissertation. Dept. of Economics. Massachusetts Institute of Technology.

Kim WS, Lyn EO (1986) Excess market value, the multinational corporation and Tobin’s q ratio. Journal of International Business Studies. 17(1): 119-125.

Kobrin SJ (1979) Political risk: A review and reconsideration. Journal of International Business Studies 10(1): 67-80.

Lim D (1983) Fiscal incentives and direct foreign investment in less developed countries. The Journal of Development Studies 19(2): 207-212.

Loree DW, Guisinger SE (1995) Policy and non-policy determinants of US equity foreign direct investment. Journal of International Business Studies 26(2): 281-299.

Root FR, Ahmed AA (1978) The influence of policy instruments on manufacturing direct foreign investment in developing countries. Journal of International Business Studies 9(1): 81-93.

Tallman S (1988) Home country political risk and foreign direct investment in the United States. Journal of International Business Studies 19(2): 219-234.

Published

2024-01-31

How to Cite

Viera Castillo, D. O., & Flores Loredo, M. A. (2024). A look at Chilean economic development from the perspective of foreign investors. Iberoamerican Business Journal, 7(2), 109–123. https://doi.org/10.22451/5817.ibj2024.vol7.2.11084