English, Article, Journal or magazine article edition: FDI Spillovers at Regional Level: Evidence from Portugal Nuno Crespo; Isabel Proença; Maria Paula Fontoura

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Bookmark: http://trove.nla.gov.au/version/162024
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • FDI Spillovers at Regional Level: Evidence from Portugal
Author
  • Nuno Crespo
  • Isabel Proença
  • Maria Paula Fontoura
Physical Description
  • preprint
Notes
  • This paper aims to establish whether geographical proximity between multinational and domestic firms is relevant to the occurrence of FDI spillovers, by considering both horizontal and vertical spillovers. Using data for Portugal, this hypothesis is confirmed. In the case of horizontal externalities, the impact is negative, probably due to the competition effect. Concerning vertical externalities, a positive impact through backward linkages is observed. Additionally, omission of the regional dimension provokes a bias on the estimation of the intra-sectoral effect at the national level. These results raise important implications for the economic policies aiming to attract FDI and promote regional development.
  • RePEc:isc:wpaper:ercwp0508
  • 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.
  • vertical spillovers; horizontal spillovers; multinational firms productivity; FDI.
  • RePEc:ise:isegwp:wp282007
Language
  • English
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