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Is the foreign capital leaving industrialized countries? The case of Spain


  • Carlos M. Fernández-Otheo

    (Universidad Complutense de Madrid)

  • Rafael Myro

    (Universidad Complutense de Madrid)


Within the present scenario of world economic integration and opening of markets, a restructuring of the international localisation of firms is underway. This is giving rise to processes of foreign direct capital divestment in some of the most developed countries that have, to a greater extent, based their development onthe provision of resources and technology from abroad via foreign direct investment. At the moment, there is not enough information to approach the magnitude and consequences of this process which complements and overlaps this other of recolation of firms. This study analyze the case of one of the most characteristic countries, Spain, looking for a capture of the importance and effects of the referred process. Here, the foreign divestment, which has grown very fast, is, and has been particulary until now, the consequence of an intense process of intrasector restructuring of the activities of non-residents companies, in which companies owned by residents also take part asa ctive buyers. The most negative effect comes from the fact that some extremly high-tech activities dedicated to international trade and with great influence in the internal market have left the national territory.

Suggested Citation

  • Carlos M. Fernández-Otheo & Rafael Myro, 2004. "Is the foreign capital leaving industrialized countries? The case of Spain," Working Papers 04-03, Asociación Española de Economía y Finanzas Internacionales.
  • Handle: RePEc:aee:wpaper:0403

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    References listed on IDEAS

    1. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    2. Richard E. Baldwin & Rikard Forslid & Jan I. Haaland, 1996. "Investment Creation and Diversion in Europe," The World Economy, Wiley Blackwell, vol. 19(6), pages 635-659, November.
    3. Bellak, Christian & Cantwell, John, 2004. "Revaluing the capital stock of international production," International Business Review, Elsevier, vol. 13(1), pages 1-18, February.
    4. Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
    5. José Mata & Pedro Portugal, 1999. "Closure and Divestiture By Foreign Entrants: The Impact of Entry and Post-Entry Strategies," Working Papers w199906, Banco de Portugal, Economics and Research Department.
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    Cited by:

    1. Oscar Bajo-Rubio & Carmen Diaz-Mora & Carmen Diaz-Roldan, 2010. "Foreign Direct Investment and Regional Growth: An Analysis of the Spanish Case," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 373-382.
    2. Gallardo Ramiro, M V, 2010. "Fundamentos en la toma de decisiones de deslocalización empresarial e inversión internacional
      [The decision-making process in offshoring and international investment]
      ," MPRA Paper 23259, University Library of Munich, Germany.
    3. Gallardo Ramiro, M V, 2010. "Deslocalización empresarial e inversión directa internacional
      [Offshoring and international investment]
      ," MPRA Paper 23228, University Library of Munich, Germany.

    More about this item


    foreign direct investment; divestment; international investment; multinational firms; manufacturing; Spain; Europe.;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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