Spillover effects of FDI in the manufacturing sector in Chile

Sammanfattning: Foreign direct investments are often argued to transfer technology to host countries. These so called spillover effects are many times assumed to have a positive and important impact on these economies. However, mainly due to problems with measuring these effects, researchers have found little or no evidence of such positive influence. Taking a closer look at Chile, a country that has seen a large inflow of foreign direct investments in recent decades, I will try to explain if such spillovers have influenced the Chilean economy. To understand the dynamics of spillover effects and the complexity of the subject both an econometric study of the manufacturing sector and a case study of the wine industry are performed. The results show that there are spillover effects but that differences between firms and sectors are of importance.