FDI and Trade in Portugal: a gravity analysis
Ana Africano () and
Manuela Magalhães ()
FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto
This study investigates the relation between the stock of foreign direct investment (FDI) and the geographical pattern of trade flows in the Portuguese economy. The gravity model is applied to bilateral trade between Portugal and OECD countries plus Brazil from 1998 to 2000. The stock of inward FDI is positively related to trade suggesting the existence of complementary between the two. This effect is stronger on exports than on imports resulting in a positive impact on trade balance. It is also found that the stock of outward FDI has no significant relation either with Portuguese exports or imports. Finally, FDI helps to explain the above “normal” exports to the EU and the below “normal” imports from Candidate Countries.
Keywords: International Trade; Foreign Direct Investment; Gravity Model. (search for similar items in EconPapers)
JEL-codes: F1 F4 (search for similar items in EconPapers)
Pages: 24 pages.
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fep.up.pt/investigacao/workingpapers/05.04.18_wp174_anapaula.pdf [301 Moved Permanently]--> https://www.fep.up.pt/investigacao/workingpapers/05.04.18_wp174_anapaula.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:174
Access Statistics for this paper
More papers in FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto Contact information at EDIRC.
Bibliographic data for series maintained by ().