Abstract


Foreign Direct investment is an important source of physical capital and technology transfer dissemination for developing countries, reason why it is essential for their development.

Over the past 50 years a series of strategies and reforms, with different levels of success, have been applied in the countries of the Latin American Region with the goal of attract foreign capitals towards their economies. Even though Peru has increase its participation in the global economy and had maintained a continued growth over the past years, the country still falls behind to other countries of the region.

The research aims to determine a new strategy to motivate foreign firms to invest and operate in Peru, presenting a serious of reforms that should be taken in order to focus new investments to the High-Technology sector. To this end, we will first analyze the strategies that were used in the country during the past 50 years and will make a brief comparison to the strategies applied by neighbor countries in order to point out the flaws of the Peruvian strategy that need to be corrected. We will then study the successful cases of countries that had already implemented strategies to attract FDI in the High-Tech sector. Finally, from the insights obtained from the successful cases and the flaws found from the Peruvian strategies applied in the past, considering also the current situation of the country, a set of reforms will be formulated towards the goal of improving the reception of foreign capitals, improving by this our position not only in the region economy, but also in the world.

Table of Contents
INTRODUCTION
CHAPTER 1: ECONOMIC STRATEGIES APPLIED IN THE PAST HALF CENTURY
1.1 IMPORT SUBSTITUTION INDUSTRIALIZATION STRATEGY
1.2 TRADE LIBERALIZATION STRATEGY
1.2.1 DISMANTLING OF TRADE PROTECTIONISM
1.2.2 EXPORT PROMOTION
1.2.3 ABOLITION OF EXCHANGE CONTROLS
1.2.4 CONQUEST OF INTERNATIONAL MARKETS
CHAPTER 2: LIMITING FACTORS FOR FDI ATTRACTION TO PERU
2.1 MANUFACTURING INDUSTRY
2.2 TRADE POLICY AND AGREEMENTS STRATEGY
2.3 PUBLIC SAFETY
CHAPTER 3: THE NEW FDI FOCUS: HIGH-TECH INDUSTRY
3.1 HIGH-TECH INDUSTRY IN LATIN AMERICA
3.2 REFORMS TO OBTAIN HIGH-TECH INDUSTRY FDI IN PERU
3.2.1 TRANSFORMATION OF THE ESPECIALIZATION PATTERN
3.2.2 DEVELOPMENT OF PRODUCTIVE INFRASTRUCTRE
3.2.3 TECHNOLOGICAL DEVELOPMENT
3.2.4 HUMAN CAPITAL DEVELOPMENT
3.2.5 LEGAL STABILITY
3.2.6 TAX REFORM
3.2.7 LABOR REFORM
3.2.8 NEW BUSINESS PRACTICES
3.2.9 MARKETS EXPANSION
CHAPTER 4: CONCLUSION
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