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Inward Foreign Direct Investment and Imports in Spain

Maite Alguacil () and Vicente Orts

International Economic Journal, 2003, vol. 17, issue 3, 19-38

Abstract: In this paper, we investigate the links between inward foreign direct investment and imports in Spain. We show that FDI in this country has been trade-oriented, encouraging greater imports. Foreign production thus magnifies its potential gains with the conventional benefits of trade. A cointegration analysis in a multivariate VAR model is applied for Granger temporal causality testing. The strength and direction of the causal relationship are shown through the dynamic variance decomposition and the impulse response technique. [Fl0, F20, F21]

Date: 2003
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Citations: View citations in EconPapers (11)

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Working Paper: INWARD FOREIGN DIRECT INVESTMENT AND IMPORTS IN SPAIN (2002) Downloads
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DOI: 10.1080/10168730300000002

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