Export development and FDI under shifting trade policy conditions: The Chilean wine industry 1990-2012

Problem: Throughout the history, the political situation in Chile has been turbulent. It has been, and still is a polarized country, which is reflected in the shifting regimes and the attitudes towards international trade and foreign competition. The trade-and investment policies throughout the years have affected the trade conditions, the investment climate, and the domestic industries. As a result of diversification efforts by the governments of exports and markets, the wine industry has become one of the most important industries for Chile. We study the effects of the political evolution from 1990-2012 on the Chilean wine industry. What led the wine industry to success? Have the trade policies contributed to the growth of the industry or not? In that case, how? Aim: The aim of this study is to analyze the correlation between Chile’s trade policies and the Chilean wine industry during 1990-2012. Limitations: We have chosen to delimitate our study to FDI and export in the Chilean wine industry, from the 1990’s until present time (2012). Furthermore, we do not examine the import; hence solely focus on export and FDI