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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, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  • Handle: RePEc:fgv:epgewp:618
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    References listed on IDEAS

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    1. Marco Bonomo & Carlos Carvalho, 2010. "Imperfectly Credible Disinflation under Endogenous Time-Dependent Pricing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(5), pages 799-831, August.
    2. Monteiro, Paulo Klinger, 2009. "First-price auction symmetric equilibria with a general distribution," Games and Economic Behavior, Elsevier, vol. 65(1), pages 256-269, January.
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    4. Flôres Junior, Renato Galvão & Watanuki, Masakazu, 2006. "Integration options for mercosul - an investigation Uusing the AMIDA Model," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 610, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    5. Lima, Luiz Renato Regis de Oliveira & Sampaio, Raquel Menezes Bezerra, 2005. "The asymmetric behavior of the U.S. public debt," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 593, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    6. Araújo, Aloísio Pessoa de & Funchal, Bruno, 2006. "How much debtors' punishment?," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 615, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    7. Issler, Joao Victor & de Mello Franco-Neto, Afonso Arinos & de Carvalho Guillen, Osmani Teixeira, 2008. "The welfare cost of macroeconomic uncertainty in the post-war period," Economics Letters, Elsevier, vol. 98(2), pages 167-175, February.
    8. Ricardo Cavalcanti & Ed Nosal, 2009. "Some benefits of cyclical monetary policy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(2), pages 195-216, May.
    9. Ferreira, Pedro Cavalcanti & Nascimento, Leandro Gonçalves do, 2005. "Welfare and growth effects of alternative fiscal rules for infrastructure investment in Brazil," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 604, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    10. Bonomo, Marco Antônio Cesar & Terra, Maria Cristina T., 2005. "Special interests and political business cycles," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 597, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    11. Cysne, Rubens Penha, 2006. "Income inequality in a job-search model with heterogeneous discount factors: (revised version, forthcoming 2006, Revista Economia)," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 611, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    12. Ferreira, Pedro Cavalcanti & Araújo, Carlos Hamilton Vasconcelos, 2006. "On the economic and fiscal effects of infrastructure investment in Brazil," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 613, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    13. Araújo, Aloísio Pessoa de & Funchal, Bruno, 2005. "Past and future of the bankruptcy law in Brazil and Latin America," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 599, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    14. Lima, Luiz Renato Regis de Oliveira & Sampaio, Raquel & Gaglianone, Wagner Piazza, 2005. "Limite de endividamento e sustentabilidade fiscal no Brasil: uma abordagem via modelo quantílico auto-regressivo (QAR)," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 602, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
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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, EconWPA.
    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, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (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. 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.
    6. Zhijie Xiao & Luiz Renato Lima, 2007. "Testing Covariance Stationarity," Econometric Reviews, Taylor & Francis Journals, vol. 26(6), pages 643-667.
    7. 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, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    8. repec:sbe:breart:v:27:y:2007:i:1:a:1570 is not listed on IDEAS
    9. repec:voj:journl:v:63:y:2016:i:3:p:313-323 is not listed on IDEAS
    10. 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.
    11. 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.
    12. Rivano, Ricardo de Oliveira & Wallace, Neil, 2006. "New models of old(?) payment questions," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 619, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    13. 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, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    14. 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.
    15. 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).
    16. repec:kap:iaecre:v:20:y:2014:i:1:p:57-72 is not listed on IDEAS
    17. 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, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).

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