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

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  • 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.

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File URL: http://www.gee.min-economia.pt/RePEc/WorkingPapers/GEE_PAPERS_49.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0049.

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Length: 42 pages
Date of creation: Jul 2013
Date of revision: Jul 2013
Handle: RePEc:mde:wpaper:0049

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Related research

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

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  1. Nuno CRESPO & Isabel PROENÇA & Maria Paula FONTOURA, 2012. "The Spatial Dimension in FDI Spillovers: Evidence at the Regional Level from Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 115-130.
  2. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 45-66, March.
  3. Natalia Barbosa & Paulo Guimaraes & Douglas Woodward, 2004. "Foreign firm entry in an open economy: the case of Portugal," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 465-472.
  4. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, 08.
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