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Foreign investment in Portugal and knowledge spillovers: From the Methuen Treaty to the 21st century

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  • T. S. Lopes
  • V. C. Simões

Abstract

This article looks at the impact of foreign direct investment (FDI) on host-country firms’ capabilities, industry competitiveness and long-term economic development. Focussing on the case of Portugal over a period of 300 years, it develops a framework of the types of knowledge spillovers, based on the behaviour of, and interactions between, foreign investors and local players. This study argues that the impact of FDI in Portugal has evolved in stages, from closed to interactive approaches, increasing the learning by local players. These ultimately lead to the long-term upgrade of firms’ capabilities, industry competitiveness and host-country economic development.

Suggested Citation

  • T. S. Lopes & V. C. Simões, 2020. "Foreign investment in Portugal and knowledge spillovers: From the Methuen Treaty to the 21st century," Business History, Taylor & Francis Journals, vol. 62(7), pages 1079-1106, October.
    • Handle: RePEc:taf:bushst:v:62:y:2020:i:7:p:1079-1106
    DOI: 10.1080/00076791.2017.1386177
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    Cited by:

    1. Crespo, Cátia Fernandes & Crespo, Nuno Fernandes & Curado, Carla, 2022. "The effects of subsidiary’s leadership and entrepreneurship on international marketing knowledge transfer and new product development," International Business Review, Elsevier, vol. 31(2).

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