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


  • Nuno Carlos LEITÃO

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

  • Saeed RASEKHI

    (University of Mazandaran, Iran)


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.

Suggested Citation

  • Nuno Carlos LEITÃO & Saeed RASEKHI, 2013. "The impact of foreign direct investment on economic growth: the Portuguese experience," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(578)), pages 51-62, January.
  • Handle: RePEc:agr:journl:v:xx:y:2013:i:1(578):p:51-62

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    Cited by:

    1. Khobai Hlalefang & Hamman Nicolene & Mkhombo Thando & Mhaka Simba & Mavikela Nomahlubi & Phiri Andrew, 2018. "The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(3), pages 33-55, December.
    2. Kingsley Ikechukwu Okere & Obumneke Bob Muoneke & Favour Chidinma Onuoha & Philip C. Omoke, 2022. "Tripartite relationship between FDI, trade openness and economic growth amidst global economic crisis in Nigeria: application of combined cointegration and augmented ARDL analysis," Future Business Journal, Springer, vol. 8(1), pages 1-23, December.
    3. Hlongwane, Nyiko Worship & Mmutle, Tumelo Donald & Daw, Olebogeng David, 2021. "The relationship between foreign direct investment and economic growth in SADC region from 2000 to 2019: An econometric view," MPRA Paper 111008, University Library of Munich, Germany.
    4. Ștefan Cristian Gherghina & Liliana Nicoleta Simionescu & Oana Simona Hudea, 2019. "Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(19), pages 1-33, September.
    5. Pei-Ling Lee & Lee Chin & Siong Hook Law & W.N.W. Azman-Saini, 2017. "Do integrated economies grow faster? Evidence from domestic equity holdings," Economics Bulletin, AccessEcon, vol. 37(4), pages 2905-2916.
    6. Oyegoke, Ebunoluwa O. & Aras, Osman Nuri, 2021. "Impact of Foreign Direct Investment on Economic Growth in Nigeria," MPRA Paper 108348, University Library of Munich, Germany.
    7. Santos Bila & Mduduzi Biyase & Matias Farahane & Thomas Udimal, 2023. "Foreign Aid And Economic Growth In Sub-Saharan African Countries," Economics Working Papers edwrg-03-2023, College of Business and Economics, University of Johannesburg, South Africa, revised 2023.
    8. Attila Jambor & Nuno Carlos Leitao, 2017. "Economic Growth and Sustainable Development: Evidence from Central and Eastern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 171-177.


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