DOES FDI INCREASE MARKET CONCENTRATION? AN EVALUATION OF THE PORTUGUESE MANUFACTURING INDUSTRIES

• Type: Article in International Scientific Journal
• Date: 2014

Authors

Rosa Maria Forte (Author) FEP; Paula Sarmento (Author) FEP

Journal

Title: Acta Oeconomica

Vol. 64

Pages: 463-480

ISSN: 0001-6373

Publisher: Akademiai Kiado

Indexing

ISI Web of Knowledge - 7 Citations

Scopus - 7 Citations

Other information

Authenticus ID: P-00A-6C1

DOI: 10.1556/aoecon.64.2014.4.4

Abstract (EN): We analyse the impact of FDI on market concentration for the Portuguese manufacturing industries in the 2006-2009 period. Using panel data estimation, and after controlling for other determinants of industry concentration (entry barriers, market size, and growth), we found a significant negative impact of FDI on industry concentration. This finding is in line with the results of the empirical literature on other developed countries. Moreover, it supports the argument that FDI has positive effects on domestic firms, eventually through positive externalities, and contradicts the widespread view that in small economies FDI increases concentration. Overall, this study adds to the controversial literature on FDI and concentration, and it is the first study on this topic applied to Portugal.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 18