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

  • 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)

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.

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Paper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 07-08.

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Length: 21 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:aee:wpaper:0708
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