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The economic effects of improving investor rights in Portugal

Abstract

The Portuguese economy has performed remarkably well since joining the EU in 1986. Output per worker grew at an annual rate of 2.25%. The relative price of investment has declined. Real investment has increased compared to output, in part fuelled by an increase in capital inflows. At the same time, resource allocation seems to have improved as well: firm-level data shows a significant decline in the dispersion of labor productivity and size across firms. This paper argues that improvements in outside investor rights that have taken place since Portugal joined the EU is a prime candidate to explain this set of facts.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10258-009-0043-y
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Article provided by Springer & Instituto Superior de Economia e Gestao in its journal Portuguese Economic Journal.

Volume (Year): 8 (2009)
Issue (Month): 2 (August)
Pages: 59-97

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Handle: RePEc:spr:portec:v:8:y:2009:i:2:p:59-97
Contact details of provider: Web page: http://www.springer.com

Web page: https://www.iseg.ulisboa.pt/aquila/instituicao/ISEG/

Order Information: Web: http://www.springer.com/economics/journal/10258/PS2

Keywords: Macroeconomics; Investment rate; Relative prices; Resource misallocation; Investor protection; Optimal contracts; Portugal; E22; F43; G32; G38; O16; O17; O41;

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Find related papers by JEL classification:
  • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
  • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
  • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
  • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
  • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
  • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
  • O - Economic Development, Innovation, Technological Change, and Growth

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  1. Francisco J. Buera & Joseph P. Kaboski & Yongseok Shin, 2011. "Finance and Development: A Tale of Two Sectors," American Economic Review, American Economic Association, vol. 101(5), pages 1964-2002, August.
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  14. Rui Castro & Gian Luca Clementi & Glenn Macdonald, 2009. "Legal Institutions, Sectoral Heterogeneity, and Economic Development," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 529-561.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Attracting FDI to Portugal
    by Rui L Castro in The Portuguese Economy on 2010-03-04 17:20:00
  2. Attracting FDI to Portugal
    by Rui L Castro in The Portuguese Economy on 2010-03-04 17:20:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:

  1. Pavel Ševcík, 2012. "Financial Contracts and the Political Economy of Investor Protection," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(4), pages 163-97, October.
  2. Francisco J. Buera & Yongseok Shin, 2009. "Productivity Growth and Capital Flows: The Dynamics of Reforms," NBER Working Papers 15268, National Bureau of Economic Research, Inc.
  3. Pedro Mazeda Gil & Fernanda Figueiredo, 2011. "Firm Size Distribution under Horizontal and Vertical Innovation," DEGIT Conference Papers c016_065, DEGIT, Dynamics, Economic Growth, and International Trade.

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