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Foreign direct investment and regional growth: An analysis of the Spanish case

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  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha and Instituto de Estudios Fiscales)

  • Carmen Díaz-Mora

    (Universidad de Castilla-La Mancha)

  • Carmen Díaz-Roldán

    (Universidad de Castilla-La Mancha)

Abstract

The massive increase in foreign direct investment (FDI) inflows following the Spanish integration with the now European Union (EU) in 1986, has been one of the most important features shaping the behaviour of the Spanish economy in the last twenty years. In this paper we will try to assess the impact of FDI on regional economic growth following Spain’s entry into the EU, using data for the 17 Spanish regions. The results support the important role played by FDI in promoting productivity growth, for those regions that received higher FDI inflows over the period analyzed.

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Bibliographic Info

Paper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 07-08.

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Length: 21 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:aee:wpaper:0708

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Keywords: Economic growth; Foreign direct investment; Regions;

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Citations

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Cited by:
  1. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI).
  2. Iwasaki, Ichiro & Suganuma, Keiko, 2014. "Foregign Direct Investment and Regional Economic Growth in Russia: An Econometric Assessment," RRC Working Paper Series 44, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
  3. Oscar Bajo-Rubio, 2010. "The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000," Working Papers 10-10, Asociación Española de Economía y Finanzas Internacionales.
  4. Gallardo Ramiro, M V, 2010. "Deslocalización empresarial e inversión directa internacional
    [Offshoring and international investment]
    ," MPRA Paper 23228, University Library of Munich, Germany.
  5. Kandogan, Yener, 2012. "Regional foreign direct investment potential of the states within the US," Journal of Economics and Business, Elsevier, vol. 64(4), pages 306-322.
  6. Gallardo Ramiro, M V, 2010. "Fundamentos en la toma de decisiones de deslocalización empresarial e inversión internacional
    [The decision-making process in offshoring and international investment]
    ," MPRA Paper 23259, University Library of Munich, Germany.
  7. Temiz, Dilek & Gökmen, Aytaç, 2014. "FDI inflow as an international business operation by MNCs and economic growth: An empirical study on Turkey," International Business Review, Elsevier, vol. 23(1), pages 145-154.

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