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Market seeking through foreign direct investment in Greece, Spain and Portugal prior to their accession to the european community

Part of : Αρχείον οικονομικής ιστορίας ; Vol.XXVI, No.2, 2014, pages 7-32
Issue:
Vol.XXVI, No.2, 2014
Pages:
7-32
Author:
Abstract:
Economic theory considers Market Seeking among the main and most common motives for Foreign Direct Investment. Export oriented firms obstructed by tariff and non-tariff barriers may decide to “jump over the barriers” by means of FDI. Greece, Spain and Portugal share a number of common characteristics before their accession to the European Community. Being economically and politically isolated from the rest of Europe they desperately needed foreign capital in order to continue their development process. This paper tests the market seeking hypothesis for the FDI to these three countries. The mainstream belief that FDI was attracted by the market demand in these countries, since exporting to them was very difficult due to their protective practices prior to the EC membership.
Subject:
Subject (LC):
Keywords:
Greece, Spain, Portugal, FDI, market seeking, econometric investigation
References (1):
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