IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/147.html
   My bibliography  Save this paper

Foreign Direct Investment in a Late Industrialising Country: The Portuguese IDP Revisited

Author

Listed:
  • Francisco B. Castro

    (CEMPRE, Faculdade de Economia da Universidade do Porto)

Abstract

This article uses the investment development path to analyse the evolution of Portugal’s competitiveness in recent years. This is interpreted as the country’s capacity to both attract and engage in foreign direct investment. The estimation of the Portuguese IDP confirms previous claims that Portugal has joined other late industrialising countries as a 'stage 4' country, but that this position may not be consolidated. Outward FDI, albeit limited in terms of the number of firms and destinations, seems to show most characteristics expected at this stage of development. However, the fading of export-oriented inward FDI during the 1990s represents a danger in a country where FDI has been critical for market access and industrial diversification despite a much smaller weight in the economy than in other OECD countries.

Suggested Citation

  • Francisco B. Castro, 2004. "Foreign Direct Investment in a Late Industrialising Country: The Portuguese IDP Revisited," FEP Working Papers 147, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:147
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/04.05.06_WP147_Francisco%20Castro.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:sae:niesru:v:160:y::i:1:p:100-111 is not listed on IDEAS
    2. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
    3. Gábor Hunya & Jan Stankovsky, 2004. "WIIW-WIFO Database. Foreign Direct Investment in Central and Eastern Europe with Special Attention to Austrian FDI Activities in this Region," WIFO Studies, WIFO, number 25150.
    4. Gabor Hunya, 2004. "Foreign Direct Investment in Central and Eastern Europe with Special Attention to Austrian FDI Activities in this Region," wiiw FDI Reports 2004-07, The Vienna Institute for International Economic Studies, wiiw.
    5. Jamuna Prasad Agarwal, 1997. "European Integration and German FDI: Implications for Domestic Investment and Central European Economies," National Institute Economic Review, National Institute of Economic and Social Research, vol. 160(1), pages 100-111, April.
    6. Gábor Hunya & Jan Stankovsky, 2004. "WIIW-WIFO Database. Foreign Direct Investment in Central and Eastern Europe with Special Attention to Austrian FDI Activities in this Region," WIFO Studies, WIFO, number 24846.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Paula Africano & Manuela Magalhaes, 2005. "FDI and Trade in Portugal: a gravity analysis," FEP Working Papers 174, Universidade do Porto, Faculdade de Economia do Porto.
    2. Teixeira, Aurora A.C. & Fortuna, Natércia, 2010. "Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," Research Policy, Elsevier, vol. 39(3), pages 335-350, April.
    3. Andrea Goldstein & Fazia Pusterla, 2008. "Emerging Economies’ Multinationals: General Features and Specificities of the Brazilian and Chinese Cases," KITeS Working Papers 223, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Oct 2008.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Gruber, 2004. "Employment and Labor Market Flexibility in the New EU Member States," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 96-121.
    2. Bellak, Christian & Leibrecht, Markus & Riedl, Aleksandra, 2008. "Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 17-37, March.
    3. Harun Kaya, 2005. "ANeglected Research Area: Internationalization of Turkish Firms via Outward Foreign Direct Investment," Anadolu University Journal of Social Sciences, Anadolu University, vol. 5(2), pages 137-154, December.
    4. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    5. Lurdes Martins & Jorge Cerdeira & Aurora A.C. Teixeira, 2020. "Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study," The World Economy, Wiley Blackwell, vol. 43(8), pages 2119-2152, August.
    6. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    7. Vishwasrao, Sharmila & Bosshardt, William, 2001. "Foreign ownership and technology adoption: evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 65(2), pages 367-387, August.
    8. Khanindra Ch. Das, 2013. "Home Country Determinants of Outward FDI from Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(1), pages 93-116, February.
    9. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    10. Ruben Molina Martinez & Oscar Hugo Pedraza Rendon & Jorge Luis Alcaraz Vargas, 2012. "Multinationalization Of Mexican Companies, La Multinacionalizacion De La Empresa Mexicana," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 5(5), pages 71-85.
    11. Angels Pelegrín Solé, 2004. "Regional distribution of foreign manufacturing investment in Spain. Do agglomeration economies matter?," ERSA conference papers ersa04p682, European Regional Science Association.
    12. Frank Barry & Holger Gorg & Andrew Mcdowell, 2003. "Outward FDI and the Investment Development Path of a Late-industrializing Economy: Evidence from Ireland," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 341-349.
    13. repec:got:cegedp:58 is not listed on IDEAS
    14. Stoian, Carmen & Mohr, Alex, 2016. "Outward foreign direct investment from emerging economies: escaping home country regulative voids," International Business Review, Elsevier, vol. 25(5), pages 1124-1135.
    15. Narula, Rajneesh, 2010. "Much ado about nothing, or sirens of a brave new world?: MNE activity from developing countries and its significance for development," MERIT Working Papers 2010-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Simona Iammarino, 2018. "FDI and regional development policy," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 157-183, December.
    17. Anil DIVARCI & Mehtap HISARCIKLILAR & Ozgur KAYALICA & Saime KAYAM, 2001. "Foreign Direct Investment and Development in MENA Countries," Middle East and North Africa 330400020, EcoMod.
    18. Dorota Ciesielska-Maciagowska & Marcin Koltuniak, 2021. "Foreign Direct Investments and Home Country’s Institutions: The Case of CEE Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 335-353.
    19. Andrew G Ross & Maktoba Omar & Anqi Xu & Samikshya Pandey, 2019. "The impact of institutional quality on Chinese foreign direct investment in Africa," Local Economy, London South Bank University, vol. 34(6), pages 572-588, September.
    20. Oludotun Fasanya, David & Ingham, Hilary & Read, Robert, 2022. "Determinants of internationalisation by firms from Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 144(C), pages 951-965.
    21. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.

    More about this item

    Keywords

    Investment Development Path; Inward FDI; Outward FDI; Portugal;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.