Foreign direct investment : the case of brazilian capitals in Chile

The increasing investment flows within Latin American countries is a recent experience. In this context, Brazil has become a relevant investment pole for Chile, although capitals from that country represent a low percentage of overall investment. This paper examines Brazilian investments in Chile, with special reference to perceptions of public, academic and governmental actors involved in developing investment. There is consensus on benefits of brazilian investment for Chile and that the country continues to be attractive for foreign capitals. However, the small size of its market, labor conflicts and costs, and the fact that it is inadequately prepared to act as a hub for the rest of the world, urgently requires reformulating the chilean scenario for investors. Finally, some topics for a bilateral agenda in this field are proposed.