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Investimento Empresarial em Portugal: Crise e Recuperação

Fernando Alexandre (), Pedro Bação, Carlos Carreira (), João Cerejeira (), Gilberto Loureiro (), António Martins () and Miguel Portela ()
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Fernando Alexandre: Escola de Economia e Gestão - Universidade do Minho
Gilberto Loureiro: Escola de Economia e Gestão da Universidade do Minho
António Martins: CeBER and Faculdade de Economia da Universidade de Coimbra

Notas Económicas, 2018, issue 46, 71-98

Abstract: In this paper we provide a description and tentative explanations for the evolution of business investment in Portugal in recent years. Naturally, the feature that stands out is the abrupt fall in investment after the beginning of the international financial crisis. Net of capital depreciation, private investment actually became negative; only in 2017 did it became positive again. Our analysis suggests that the main driver of investment has been excess capacity relative to demand. Another important element has been the state of producers’ confidence. On the other hand, the cost of capital seems to have had a relatively small role, although indebtedness and the cash flow appear to have some influence on investment decisions. The more dynamic firms are especially sensitive to cash flows. Our analysis also suggests that the last few years have been characterized by high levels of zombie firms, although in 2016 the percentage of zombie firms declined considerably. Another recent piece of good news is the increase of tradable sectors’ share in corporate investment. These elements indicate that the Portuguese economy may be undergoing a process of structural change.

Keywords: Financial crisis; financial frictions; investment; Portugal; zombie firms (search for similar items in EconPapers)
JEL-codes: D22 D25 E22 E27 (search for similar items in EconPapers)
Date: 2018-06
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DOI: 10.14195/2183-203X_46_4

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