Agglomeration and the location of foreign direct investment in Portugal

• Type: Article in International Scientific Journal
• Date: 2000

Authors

Paulo Guimaraes (Author) FEP; Octávio Figueiredo (Author) FEP; Douglas Woodward (Author) Other

Journal

Title: Journal of Urban Economics

Vol. 47 No. 1

Pages: 115-135

ISSN: 0094-1190

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 283 Citations

ISI Web of Science

Scopus - 311 Citations

Scientific classification

FOS: Social sciences > Other social sciences

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-001-1TZ

DOI: 10.1006/juec.1999.2138

Abstract (EN): In urban economics, and more recently in the international economics literature, agglomeration has been offered as a principal determinant of new investment. Yet agglomeration has rarely been subject to precise statistical tests. In this paper, the availability of detailed urban and regional data for Portugal allowed for a close study of the spatial choices for newly created foreign-owned plants. It appears that agglomeration economies are decisive location factors. Service agglomeration has a notably strong effect, while industry-level localization economies and urbanization externalities are verifiable location determinants as well. Distance from the principal cities is statistically significant, but there is no evidence that local labor costs matter. (C) 2000 Academic Press.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 21