Publicação
Foreign direct investment in the context of the financial crisis and bailout
| Resumo: | The experience of the Portuguese economy with foreign direct investment (FDI) after the outbreak of the global financial crisis in 2008 and the sovereign crisis that followed represents a new stage in its complex history with this increasingly critical flow. This is true with regard to both inward and outward flows and stocks and it is the main focus of the present chapter, which focuses on the period 2008–2013, especially after Portugal’s bailout by international institutions in May 2011, 1 which lasted until June 2014. Portugal has never had strong links with FDI, but the period 2008–2013, in particular after 2011, stands out. For example, the attraction of FDI was driven mainly by short-term concerns such as the privatisation program (to mitigate the problems generated by the public deficit and debt) and other expediency measures, such as the fast-track granting of ‘golden visas’ to non-EU residents who invest in the real estate sector. Whatever the measures, and probably due to austerity and uncertainty about the final outcome of the bailout, FDI inflows have not been significant by international standards and indeed have diminished. As far as FDI outflows are concerned, Portuguese firms intensified their relocation to other countries, particularly to the Netherlands, where conditions for conducting operations abroad are much more favourable, making Portugal even more passive and marginalised from this point of view . |
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| Autores principais: | Silva, Joaquim Ramos |
| Assunto: | Portuguese Economy Foreign Direct Investment Public Debt Financial Crisis - 2008 Macroeconomic Variables |
| Ano: | 2015 |
| País: | Portugal |
| Tipo de documento: | capítulo de livro |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The experience of the Portuguese economy with foreign direct investment (FDI) after the outbreak of the global financial crisis in 2008 and the sovereign crisis that followed represents a new stage in its complex history with this increasingly critical flow. This is true with regard to both inward and outward flows and stocks and it is the main focus of the present chapter, which focuses on the period 2008–2013, especially after Portugal’s bailout by international institutions in May 2011, 1 which lasted until June 2014. Portugal has never had strong links with FDI, but the period 2008–2013, in particular after 2011, stands out. For example, the attraction of FDI was driven mainly by short-term concerns such as the privatisation program (to mitigate the problems generated by the public deficit and debt) and other expediency measures, such as the fast-track granting of ‘golden visas’ to non-EU residents who invest in the real estate sector. Whatever the measures, and probably due to austerity and uncertainty about the final outcome of the bailout, FDI inflows have not been significant by international standards and indeed have diminished. As far as FDI outflows are concerned, Portuguese firms intensified their relocation to other countries, particularly to the Netherlands, where conditions for conducting operations abroad are much more favourable, making Portugal even more passive and marginalised from this point of view . |
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