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

Listed author(s):
  • Francisco B. Castro


    (CEMPRE, Faculdade de Economia da Universidade do Porto)

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.

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Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 147.

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Length: 17 pages
Date of creation: May 2004
Handle: RePEc:por:fepwps:147
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  1. repec:sae:niesru:v:160:y::i:1:p:100-111 is not listed on IDEAS
  2. 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.
  3. Gabor Hunya, 2004. "Foreign Direct Investment in Central and Eastern Europe with Special Attention to Austrian FDI Activities in this Region," wiiw FDI Reports 2004-02, The Vienna Institute for International Economic Studies, wiiw.
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