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Regional and Sectoral Foreign Direct Investment in Portugal since Joining the EU: A Dynamic Portrait

Author

Listed:
  • Irina Melo

    (Lusa, Portuguese News Agency and Instituto Universitário de Lisboa (ISCTE - IUL))

  • Alexandra Ferreira-Lopes

    (Instituto Universitário de Lisboa (ISCTE - IUL))

Abstract

Despite the very few studies regarding FDI in Portuguese regions - especially regarding its effects - FDI can be an important catalyst for regional economic development and growth. This work studies the existing FDI in the Portuguese regions, analysing its distribution by NUTS III, the sectors in which FDI has more weight in each region, as well as it evolution between 1986 and 2009. Over the years analysed, the results show an increase in the number of firms with FDI in Portugal, although their relative weight remained constant. At the same time, these firms spread to all regions of the country, besides the main economic and services agglomerations (Lisboa and Porto). The regions attracted not only FDI for the sectors in which they have already been specialized, but also for other activities, diversifying the regional productive structure. The increase and diversification of FDI coincided with the tertiarisation of the economy, approaching the totality of the productive specialization of the country, while continuing to focus on manufacturing.

Suggested Citation

  • Irina Melo & Alexandra Ferreira-Lopes, 2013. "Regional and Sectoral Foreign Direct Investment in Portugal since Joining the EU: A Dynamic Portrait," GEE Papers 0049, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2013.
    • Handle: RePEc:mde:wpaper:0049
    as

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    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_49.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Keywords: Regional FDI; Regional Distribution of the Economic Activity of Multinationals; Productive Specialization of the Regions; Cluster Analysis; Shift-Share Analysis; Portugal;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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