FDI Spillovers at Regional Level: Evidence from Portugal

Nuno Crespo (), Isabel Proença () and Maria Paula Fontoura

No 2007/28, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: This paper aims to establish whether geographical proximity between the locations of multinational firms and domestic firms facilitates the occurrence of FDI spillovers. Using data for Portugal, this hypothesis is clearly confirmed. However, the impact varies according to whether the externalities considered are horizontal or vertical. In the first case, the impact is negative, which may result from the competition effect at regional level. With regard to vertical externalities, a positive impact through backward linkages is observed. These results raise important implications for the definition of economic policies aiming to attract FDI and promote regional development.

Keywords: vertical spillovers; horizontal spillovers; multinational firms productivity; FDI. (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-cse and nep-geo
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: FDI spillovers at regional level: Evidence from Portugal* (2009)
Working Paper: FDI Spillovers at Regional Level: Evidence from Portugal (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp282007

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