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Regional and Sectoral Foreign Direct Investment in Portugal since Joining the EU: A Dynamic Portrait

Irina Melo () and Alexandra Lopes ()
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Irina Melo: Lusa, Portuguese News Agency and Instituto Universitário de Lisboa (ISCTE - IUL)

No 49, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Despite the very few studies regarding FDI in Portuguese regions - especially regarding its effects - FDI can be an important catalyst for regional economic development and growth. This work studies the existing FDI in the Portuguese regions, analysing its distribution by NUTS III, the sectors in which FDI has more weight in each region, as well as it evolution between 1986 and 2009. Over the years analysed, the results show an increase in the number of firms with FDI in Portugal, although their relative weight remained constant. At the same time, these firms spread to all regions of the country, besides the main economic and services agglomerations (Lisboa and Porto). The regions attracted not only FDI for the sectors in which they have already been specialized, but also for other activities, diversifying the regional productive structure. The increase and diversification of FDI coincided with the tertiarisation of the economy, approaching the totality of the productive specialization of the country, while continuing to focus on manufacturing.

Keywords: Keywords: Regional FDI; Regional Distribution of the Economic Activity of Multinationals; Productive Specialization of the Regions; Cluster Analysis; Shift-Share Analysis; Portugal (search for similar items in EconPapers)
JEL-codes: F21 F23 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-geo, nep-sbm and nep-spo
Date: 2013-07, Revised 2013-07
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http://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_49.pdf First version, 2012 (application/pdf)

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