Locational aspects of foreign direct investment in Portugal
Autor(a) principal: | |
---|---|
Data de Publicação: | 1998 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/22728 |
Resumo: | The paper deals with the evolution of foreign direct investment (henceforth named FDI) in a host country in what concerns the location aspect: why is a good produced in a country by a foreign subsidiary instead of being imported from the mother-firm? Following the "new economic geography" strand of literature. The location of investment is explained by three forces: increasing returns, which tend to concentrate production in the large country; transport costs, which decentralize production most the more symmetric the distribution of population is; and comparative advantage following from immobile factors of production, which we assume to benefit the small country. Along a process of economic integration, the small country has in the beginning (with high transfer costs) an FDI directed to the local market. Then, with lower (intermediate) trade costs, the small country becomes dependent on imports. Eventually, with very low trade costs, it will be possible for the small country to exploit a comparative advantage and have an FDI addressed both to local and foreign markets. This methodology enables to explain three stylised facts of FDI in Portugal since adhesion to the European Community in 1986. First, it explains why FDI rose fast from 1986 up to 1991 and stagnated ever since. Then, it enables to understand the sensibility of FDI to conjuncture. At last, the reasons of the increasing magnitude of disinvestment by foreign firms in recent years can be understood |
id |
RCAP_56784a867ed76b074669b6240ecb7c33 |
---|---|
oai_identifier_str |
oai:www.repository.utl.pt:10400.5/22728 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Locational aspects of foreign direct investment in PortugalForeign Direct InvestmentMultinationalsEconomic GeographyPortugalThe paper deals with the evolution of foreign direct investment (henceforth named FDI) in a host country in what concerns the location aspect: why is a good produced in a country by a foreign subsidiary instead of being imported from the mother-firm? Following the "new economic geography" strand of literature. The location of investment is explained by three forces: increasing returns, which tend to concentrate production in the large country; transport costs, which decentralize production most the more symmetric the distribution of population is; and comparative advantage following from immobile factors of production, which we assume to benefit the small country. Along a process of economic integration, the small country has in the beginning (with high transfer costs) an FDI directed to the local market. Then, with lower (intermediate) trade costs, the small country becomes dependent on imports. Eventually, with very low trade costs, it will be possible for the small country to exploit a comparative advantage and have an FDI addressed both to local and foreign markets. This methodology enables to explain three stylised facts of FDI in Portugal since adhesion to the European Community in 1986. First, it explains why FDI rose fast from 1986 up to 1991 and stagnated ever since. Then, it enables to understand the sensibility of FDI to conjuncture. At last, the reasons of the increasing magnitude of disinvestment by foreign firms in recent years can be understoodISEG - Departamento de EconomiaRepositório da Universidade de LisboaPontes, José Pedro2021-12-14T19:45:30Z19981998-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/22728engPontes, José Pedro. 1998. "Locational aspects of foreign direct investment in Portugal". Instituto Superior de Economia e Gestão - DE Working papers nº 10-1998/DEinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:52:16Zoai:www.repository.utl.pt:10400.5/22728Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:07:04.838488Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Locational aspects of foreign direct investment in Portugal |
title |
Locational aspects of foreign direct investment in Portugal |
spellingShingle |
Locational aspects of foreign direct investment in Portugal Pontes, José Pedro Foreign Direct Investment Multinationals Economic Geography Portugal |
title_short |
Locational aspects of foreign direct investment in Portugal |
title_full |
Locational aspects of foreign direct investment in Portugal |
title_fullStr |
Locational aspects of foreign direct investment in Portugal |
title_full_unstemmed |
Locational aspects of foreign direct investment in Portugal |
title_sort |
Locational aspects of foreign direct investment in Portugal |
author |
Pontes, José Pedro |
author_facet |
Pontes, José Pedro |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Pontes, José Pedro |
dc.subject.por.fl_str_mv |
Foreign Direct Investment Multinationals Economic Geography Portugal |
topic |
Foreign Direct Investment Multinationals Economic Geography Portugal |
description |
The paper deals with the evolution of foreign direct investment (henceforth named FDI) in a host country in what concerns the location aspect: why is a good produced in a country by a foreign subsidiary instead of being imported from the mother-firm? Following the "new economic geography" strand of literature. The location of investment is explained by three forces: increasing returns, which tend to concentrate production in the large country; transport costs, which decentralize production most the more symmetric the distribution of population is; and comparative advantage following from immobile factors of production, which we assume to benefit the small country. Along a process of economic integration, the small country has in the beginning (with high transfer costs) an FDI directed to the local market. Then, with lower (intermediate) trade costs, the small country becomes dependent on imports. Eventually, with very low trade costs, it will be possible for the small country to exploit a comparative advantage and have an FDI addressed both to local and foreign markets. This methodology enables to explain three stylised facts of FDI in Portugal since adhesion to the European Community in 1986. First, it explains why FDI rose fast from 1986 up to 1991 and stagnated ever since. Then, it enables to understand the sensibility of FDI to conjuncture. At last, the reasons of the increasing magnitude of disinvestment by foreign firms in recent years can be understood |
publishDate |
1998 |
dc.date.none.fl_str_mv |
1998 1998-01-01T00:00:00Z 2021-12-14T19:45:30Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/22728 |
url |
http://hdl.handle.net/10400.5/22728 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Pontes, José Pedro. 1998. "Locational aspects of foreign direct investment in Portugal". Instituto Superior de Economia e Gestão - DE Working papers nº 10-1998/DE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - Departamento de Economia |
publisher.none.fl_str_mv |
ISEG - Departamento de Economia |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799131163852275712 |