Has the crisis affected Spanish investment strategy abroad? A spatial panel data approach. (2nd December 2018)

• Record Type: Journal Article
• Authors: Gutiérrez‐Portilla, Paula; Maza, Adolfo; Villaverde, José
• Is Part Of: World economy. Volume 42:Number 4(2019)
• Page Start: 1032
• Page End: 1056
• Publication Date: 2018-12-02
• Subjects: foreign direct investment -- Spain -- spatial dependence; International economic relations -- Periodicals; 330
• DOI: 10.1111/twec.12740
• Languages: English
• ISSNs: 0378-5920

Abstract

Abstract: This paper investigates whether the Spanish investment strategy abroad has been affected by the Great Recession. Applying a panel spatial Durbin model for two sample periods, pre‐crisis (1996–2007) and crisis (2008–14), our findings indicate that Spanish foreign direct investment (FDI) strategy has been indeed markedly altered by the global economic crisis. Complex‐vertical FDI motives prevailed over the pre‐crisis period, whereas horizontal FDI did so over the crisis. These results are robust to the use of sectoral FDI data and alternative specifications of the spatial weight matrix.