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The role of foreign direct investment in growth: Spain, 1964-2013

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  • Bajo-Rubio, Oscar

Abstract

Foreign direct investment (FDI) has played a major role in the deep process of transformation experienced by the Spanish economy since the first 1960s, which even intensified following the integration with the now European Union (EU) in 1986. In this paper, we analyse the long-run effects of FDI in Spain, by estimating a production function including the foreign capital stock over the period 1964-2013. We find a significant contribution of foreign capital on the accumulated growth of GDP over the period of analysis, which seems however to have been greater during the first years of the period analysed.

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  • Bajo-Rubio, Oscar, 2020. "The role of foreign direct investment in growth: Spain, 1964-2013," GLO Discussion Paper Series 676, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:676
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    More about this item

    Keywords

    Economic growth; Foreign direct investment;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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