Foreign Direct Investment spillovers in Portugal : Additional lessons from a country study

• Autor(a) principal: Flôres, Renato G.
• Data de Publicação: 2007
• Outros Autores: Fontoura, Maria Paula, Santos, Rogério Guerra
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.5/26134
• topic: Foreign Direct Investment (FDI); Produtivity; Manufacturing Sectors; Spillovers Diffusion; Portugal

This paper investigates the impact of foreign direct investment (FDI) on the productivity of Portuguese manufacturing sectors. It improves on previous studies by considering the choice of the most appropriate interval of the technological gap for spillovers diffusion. Sectoral variation in the coefficients of the spillover effect is also allowed for. Idiosyncratic factors are identified by means of a fixed effects panel model and positive intersectoral spillovers are also 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 a pertinent specific influence.