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Foreign direct investment and regional growth: An analysis of the Spanish case

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Listed:
  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha and Instituto de Estudios Fiscales)

  • Carmen Díaz-Mora

    (Universidad de Castilla-La Mancha)

  • Carmen Díaz-Roldán

    (Universidad de Castilla-La Mancha)

Abstract

The massive increase in foreign direct investment (FDI) inflows following the Spanish integration with the now European Union (EU) in 1986, has been one of the most important features shaping the behaviour of the Spanish economy in the last twenty years. In this paper we will try to assess the impact of FDI on regional economic growth following Spain´s entry into the EU, using data for the 17 Spanish regions. The results support the important role played by FDI in promoting productivity growth, for those regions that received higher FDI inflows over the period analyzed.

Suggested Citation

  • Oscar Bajo-Rubio & Carmen Díaz-Mora & Carmen Díaz-Roldán, 2007. "Foreign direct investment and regional growth: An analysis of the Spanish case," Working Papers 07-08, Asociación Española de Economía y Finanzas Internacionales.
  • Handle: RePEc:aee:wpaper:0708
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    References listed on IDEAS

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    Cited by:

    1. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI).
    2. Temiz, Dilek & Gökmen, Aytaç, 2014. "FDI inflow as an international business operation by MNCs and economic growth: An empirical study on Turkey," International Business Review, Elsevier, vol. 23(1), pages 145-154.
    3. María C. Latorre, 2013. "On the Differential Behaviour of National and Multinational Firms: A Within- and Across-sectors Approach," The World Economy, Wiley Blackwell, vol. 36(10), pages 1294-1317, October.
    4. Ichiro Iwasaki & Keiko Suganuma, 2015. "Foreign direct investment and regional economic development in Russia: an econometric assessment," Economic Change and Restructuring, Springer, vol. 48(3), pages 209-255, November.
    5. Gallardo Ramiro, M V, 2010. "Deslocalización empresarial e inversión directa internacional
      [Offshoring and international investment]
      ," MPRA Paper 23228, University Library of Munich, Germany.
    6. Bajo-Rubio, Oscar, 2012. "The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850–2000," Explorations in Economic History, Elsevier, vol. 49(1), pages 105-117.
    7. Kandogan, Yener, 2012. "Regional foreign direct investment potential of the states within the US," Journal of Economics and Business, Elsevier, vol. 64(4), pages 306-322.
    8. repec:eee:touman:v:41:y:2014:i:c:p:19-25 is not listed on IDEAS
    9. Yuandi Wang & Lutao Ning & Jian Li & Martha Prevezer, 2016. "Foreign Direct Investment Spillovers and the Geography of Innovation in Chinese Regions: The Role of Regional Industrial Specialization and Diversity," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 805-822, May.
    10. Carolina Mainer-Casado & José C. Fariñas & Lourdes Moreno Martín, 2018. "The Scope, Scale and Locational Preferences of Spanish Multinationals
      [Las decisiones de localización, alcance y escala de las empresas multinacionales españolas]
      ," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 18-02, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
    11. Ning, Lutao & Wang, Fan & Li, Jian, 2016. "Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities," Research Policy, Elsevier, vol. 45(4), pages 830-843.
    12. Tomasz Dorożyński & Janusz Świerkocki & Wojciech Urbaniak, 2015. "Incentives for Attracting FDI: The Case of the Lodz Region," Gospodarka Narodowa, Warsaw School of Economics, issue 1, pages 147-169.
    13. 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.

    More about this item

    Keywords

    Economic growth; Foreign direct investment; Regions;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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