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Foreign direct investment spillovers in Portugal: additional lessons from a country study

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  • Flôres Junior, Renato Galvão
  • Fontoura, Maria Paula
  • Santos, Rogério Guerra

Abstract

This paper investigates the impact of FDI on the productivity of Portuguese manufacturing sectors. Model specification is improved by considering the choice of the most appropriate interval of the technological gap for spillovers diffusion. We also allow for sectoral variation in the coefficients of the spillover effect; idiosyncratic sectoral factors are identified by means of a fixed effects model. Inter-sectoral positive spillover effects are examined. Significant spillovers require a proper technological differential between foreign and domestic producers and favourable sectoral characteristics. They may occur in modern industries in which the foreign firms have a clear, but not too sharp, edge on the domestic ones. Agglomeration effects are also one pertinent specific influence.

Suggested Citation

  • Flôres Junior, Renato Galvão & Fontoura, Maria Paula & Santos, Rogério Guerra, 2006. "Foreign direct investment spillovers in Portugal: additional lessons from a country study," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 618, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
  • Handle: RePEc:fgv:epgewp:618
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    Cited by:

    1. Isabel Proenca & Maria Paula Fontoura & Nuno Crespo, 2005. "Productivity Spillovers From Multinational Corporations: Vulnerability To Deficient Estimation," International Trade 0508004, University Library of Munich, Germany.
    2. C. Imbriani & R. Pittiglio & F. Reganati & E. Sica, 2014. "How Much do Technological Gap, Firm Size, and Regional Characteristics Matter for the Absorptive Capacity of Italian Enterprises?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(1), pages 57-72, February.
    3. Araújo, Fabio & Issler, João Victor & Fernandes, Marcelo, 2006. "A stochastic discount factor approach to asset pricing using panel data," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 628, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    4. Nuno Crespo & Maria Paula Fontoura & Frank Barry, 2004. "EU Enlargement and the Portuguese Economy," The World Economy, Wiley Blackwell, vol. 27(6), pages 781-802, June.
    5. Santos, Eleonora, 2017. "Assessing the Impact of Foreign Direct Investment on Domestic Manufacturing Firms’ Productivity: A Database for Portugal," MPRA Paper 88959, University Library of Munich, Germany.
    6. Rosanna Pittiglio & Filippo Reganati & Edgardo Sica, 2015. "Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?," Manchester School, University of Manchester, vol. 83(3), pages 346-378, June.
    7. Zhijie Xiao & Luiz Renato Lima, 2007. "Testing Covariance Stationarity," Econometric Reviews, Taylor & Francis Journals, vol. 26(6), pages 643-667.
    8. Flôres Junior, Renato Galvão, 2006. "The diversity of diversity: further methodological considerations on the use of the concept in cultural economics," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 626, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    9. Lima, Luiz Renato & Néri, Breno Pinheiro, 2007. "Comparing Value-at-Risk Methodologies," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 27(1), May.
    10. Klára Katona, 2018. "Impact of Knowledge Capital on the Production of Hungarian Firms," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(2), pages 135-146, May.
    11. Rosanna Pittiglio Author-Email: rosanna.pittiglio@unina2.it, 2016. "Vertical Spillovers from Multinational Enterprises: Does Technological Gap Matter?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(3), pages 313-323, June.
    12. Lima, Luiz Renato & Gaglianone, Wagner Piazza & Sampaio, Raquel M.B., 2008. "Debt ceiling and fiscal sustainability in Brazil: A quantile autoregression approach," Journal of Development Economics, Elsevier, vol. 86(2), pages 313-335, June.
    13. Miguel Lebre de Freitas & Ricardo Paes Mamede, 2011. "Structural transformation of Portuguese exports and the role of foreign-owned firms: A descriptive analysis for the period 1995-2005," Notas Económicas, Faculty of Economics, University of Coimbra, issue 33, pages 20-43, June.
    14. Cavalcanti, Ricardo de Oliveira & Wallace, Neil, 2006. "New models of old(?) payment questions," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 619, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    15. Flôres Junior, Renato Galvão, 2006. "Dois ensaios sobre diversidade cultural e o comércio de serviços," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 622, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    16. Klaus E Meyer & Evis Sinani, 2009. "When and where does foreign direct investment generate positive spillovers? A meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1075-1094, September.
    17. PROENÇA, Isabel & FONTOURA, Paula & CRESPO, Nuno, 2006. "Productivity Spillovers From Multinational Corporations In Portugal: Vulnerability To Deficient Estimation," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
    18. Enrique Martínez-Galán & Maria Paula Fontoura, 2016. "GGlobal Value Chains assessment in the 2000s: an approach with income transfers," Working Papers Department of Economics 2016/15, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    19. repec:kap:iaecre:v:20:y:2014:i:1:p:57-72 is not listed on IDEAS
    20. Flôres Junior, Renato Galvão, 2008. "Trade and poverty in latin american countries: conceptual and methodological challenges," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 675, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).

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