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The impact of foreign direct investment on economic growth: the Portuguese experience

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Author Info

  • Nuno Carlos LEITÃO

    (Polytechnic Institute of Santarém, and CEFAGE- Évora University, Portugal)

  • Saeed RASEKHI

    (University of Mazandaran, Iran)

Abstract

This study examines the link between economic growth and foreign direct investment for Portugal. Using a panel data approach, the results show that there is convergence among Portugal and her trading partners. Our results also demonstrate that foreign direct investment and bilateral trade promote economic growth. The growth is negatively correlated with inflation and the initial level of GDP per capita. As in previous studies taxes plays a minor role on determining the growth.

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Bibliographic Info

Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

Volume (Year): XVIII(2013) (2013)
Issue (Month): 1(578) (January)
Pages: 51-62

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Handle: RePEc:agr:journl:v:1(578):y:2013:i:1(578):p:51-62

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Keywords: Portugal; economic growth; foreign direct investment; panel data.;

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