Evaluating The Impact of FDI and Copper Mining in Chile

This thesis seeks to examine the effects of foreign direct investment (FDI) on Chile's copper industry. Copper production and exports are dominated by Chile on a global scale and demand for copper is increasing due to its critical role in industries such as construction, manufacturing, automotive, and telecommunications. Chile has experienced significant political and economic transformations over the last five decades. Beginning in the 1930s, socialist governments-imposed policies of nationalization and control over key sectors such as copper production and other industries such as banking, finance, and textiles. Under August Pinochet’s dictatorship, the country implemented a series of neoliberal reforms in 1973, including trade liberalization, financial liberalization, and privatization. These changes made it possible for Chile to attract FDI, which was critical to the country's economic development. This research will look at the effects of FDI and copper price on the Chilean economy, using GDP to measure economic growth. The study will employ time-series econometric techniques such as unit root tests, and autoregressive distributed lag model. The study's data will be gathered from 1980 to 2019, spanning a period of significant change in Chile's political and economic policies. The findings of this study will shed light on the relationship between FDI, copper price, and Chilean economic growth. This study also aims to contribute to the broad knowledge of the impact of FDI on the Chilean economy and copper sector.