Advertisement

FDI, income inequality and poverty: a time series analysis of Portugal, 1973–2016

  • Aurora A. C. TeixeiraEmail author
  • Ana Sofia Loureiro
Original Article

Abstract

Using time series data for Portugal between 1973 and 2016, this paper examines to what extent, inward FDI contributes to income inequality and poverty in the long-run. It was found that increased flows of inward FDI are associated with a less unequal income distribution and lower poverty rates. The results further suggest that, in the Portuguese case there is mutual causality between inward FDI and poverty in the long run, i.e., FDI significantly reduces poverty, and lower levels of poverty lead to higher inward FDI flows. In the case of inequality, the evidence shows that FDI does not contribute to higher (or lower) income inequality. Instead, more unequal income distributions significantly and negatively impact on inward FDI in the long run. Finally, human capital emerged as a key determinant to mitigate income inequality and circumvent poverty, contributing, indirectly, to fostering additional FDI inflows. Such results call for integrated public policy interventions that emphasize social and institutional dimensions.

Keywords

FDI Inequality Poverty Portugal Johansen cointegration Granger (non-) causality 

JEL classifications

D63 I32 F30 O52 C32 

Notes

Acknowledgments

The authors would like to thank Margarida Duarte (the associate editor) and two anonymous referees for constructive criticism and helpful suggestions. The authors also acknowledge the valuable remarks of Margarida Mello and Natércia Fortuna. Responsibility for any errors rests exclusively with the authors.

Supplementary material

References

  1. Abor J, Harvey SK (2008) Foreign direct investment and employment: host country experience. Macroecon Financ Emerg Mark Econ 1(2):213–225Google Scholar
  2. Acemoglu D, Johnson S, Robinson JA, Yared P (2009) Reevaluating the modernization hypothesis. J Monet Econ 56(8):1043–1058Google Scholar
  3. Adams S, Mengistu B (2015) Privatization, governance and economic development in developing countries. J Dev Soc 24(4):415–438Google Scholar
  4. Adams S, Klobodu E (2018) Capital flows and economic growth revisited: evidence from five sub-Saharan African countries. Int Rev Appl Econ 32(5):620–640Google Scholar
  5. Andini C (2010) Within-groups wage inequality and schooling: Further evidence for Portugal. Appl Econ 42(28):3685–3691Google Scholar
  6. Agénor P-R (2004) Does globalization hurt the poor? Int Econ Econ Policy 1(1):21–51Google Scholar
  7. Aghion P, Howitt P (1998). Endogenous growth theory, MIT pressGoogle Scholar
  8. Aghion P, Caroli E, Cecilia García-Peñalosa C (1999) Inequality and economic growth: the perspective of the new growth theories. J Econ Lit 37(4):1615–1660Google Scholar
  9. Ahmad J, Harnhirun S (1995) Unit roots and cointegration in estimating causality between exports and economic growth: empirical evidence from the ASEAN countries. Econ Lett 49:329–334Google Scholar
  10. Albuquerque P, Arcanjo M, Escária V, Nunes F, Pereirinha J (2010) Retirement and the poverty of the elderly: The case of Portugal. J Income Distrib 19(3-4):41–64Google Scholar
  11. Alfaro L (2017) Gains from foreign direct investment: macro and micro approaches. World Bank Econ Rev 30(1):S2–S15Google Scholar
  12. Alfaro L, Johnson MS (2013) Foreign direct investment and growth. In: Caprio G (ed) The evidence and impact of financial globalization. Academic Press, UK, pp 299–309Google Scholar
  13. Ali M, Nishat M (2009) Do foreign inflows benefit Pakistani poor? Pak Dev Rev 48(4):715–738Google Scholar
  14. Alves N (2009) New facts on poverty in Portugal. Econ Bull | Banco de Portugal, 117–143Google Scholar
  15. Alves N (2012) The impact of education on household income and expenditure inequality. Appl Econ Lett 19(10):915–919Google Scholar
  16. Amaro RR (coord.) (2003) A luta contra a pobreza e a exclusão social em Portugal. Programa STEP/Portugal do BIT, Lisbon: International Labor OrganizationGoogle Scholar
  17. Andraz JM, Rodrigues PMM (2010) What causes economic growth in Portugal: exports or inward FDI? J Econ Stud 37(3):267–287Google Scholar
  18. Arcanjo M, Bastos A, Nunes F, Passos J (2013) Child poverty and the reform of family cash benefits. J Soc-Econ 43:11–23Google Scholar
  19. Arnold J, Rodrigues CF (2015) Reducing inequality and poverty in Portugal, Economics Department Working Papers No. 1258, OECD, ECO/WKP(2015) 76Google Scholar
  20. Atkinson AB, Rainwater L, Smeeding TM (1995) Income distribution in OECD countries: Evidence from the Luxembourg Income Study (LIS). Social Policy Studies No. 18. Paris: Organization for Economic Cooperation and DevelopmentGoogle Scholar
  21. Badia-Miró M, Guilera J, Lains P (2012) Regional Incomes in Portugal: Industrialisation, Integration and Inequality, 1890-1980. J Iberian Latin American Econ Hist 30(2):225–244Google Scholar
  22. Barbosa N, Louri H (2002) On the determinants of multinationals’ ownership preferences: Evidence from Greece and Portugal. Int J Ind Org 20(4):493–515Google Scholar
  23. Barbosa N, Eiriz V (2009) The role of inward foreign direct investment on entrepreneurship. Int Entrep Manag J 5(3):319–339Google Scholar
  24. Barbosa N, Guimarães P, Woodward D (2004) Foreign firm entry in an open economy: The case of Portugal. Appl Econ 36(5):465–472Google Scholar
  25. Barroco C, Castro EA, Costa C (2014) Attractiveness Factors for Foreign Direct Investment (FDI) in the Portuguese Tourism Sector. Rev Turismo Desenv 21/22(4):13–23Google Scholar
  26. Barros CP, Damásio B, Faria JR (2014) Reverse FDI in Europe: an analysis of Angola’s FDI in Portugal. Afr Dev Rev 26(1):160–171Google Scholar
  27. Bastos A, Casaca SF, Nunes F, Pereirinha J (2009) Women and poverty: A gender-sensitive approach. J Socio-Econ 38(5):764–778Google Scholar
  28. Basu P, Guariglia A (2007) Foreign direct investment, inequality, and growth. J Macroecon 29(4):824–839Google Scholar
  29. Batuo ME, Asongu SA (2015) The impact of liberalization policies on income inequality in African countries. J Econ Stud 42(1):68–100Google Scholar
  30. Becker G (1995) Human capital and poverty alleviation, HRO working papers 52, The World Bank, in http://documents.worldbank.org/curated/pt/121791468764735830/Human-capital-and-poverty-alleviation, last accessed in August 2018
  31. Berman E, Machin S (2000) Skill-biased technology transfer around the world. Oxf Rev Econ Policy 16(3):12–22Google Scholar
  32. Bermejo Carbonell J, Werner RA (2018) Does foreign direct investment generate economic growth? A new empirical approach applied to Spain. Econ Geogr 94(4):425–456Google Scholar
  33. Bharadwaj A (2014) Reviving the globalization and poverty debate: Effects of real and financial integration on the developing world. Advances Econ Bus 2:42–57Google Scholar
  34. Blanden J, Hansen K, Machin S (2010) The economic cost of growing up poor: estimating the GDP loss associated with child poverty. Fisc Stud 31(3):289–311Google Scholar
  35. Bruno RL, Cipollina M (2018) A meta-analysis of the indirect impact of foreign direct investment in old and new EU member states: understanding productivity spillovers. World Econ 41(5):1342–1377Google Scholar
  36. Buckley P, Castro FB (1998) The Investment Development Path: The case of Portugal. Transl Corp 7(1):1–15Google Scholar
  37. Bussmann M, de Soysa I, Oneal JR (2005) The effect of globalization on national income inequality. Comp Sociol 4(3):285–312Google Scholar
  38. Cabral R, García-Díaz R, Mollick AV (2016) Does globalization affect top income inequality? J Policy Model 38(5):916–940Google Scholar
  39. Calvo C, Hernandez M (2006) Foreign direct investment and poverty in Latin America. Paper Delivered at the Globalisation and Economic Policy Fifth Annual Postgraduate Conference. University of Nottingham.Google Scholar
  40. Cardoso AR (1997) Workers or employers: Who is shaping wage inequality? Oxf Bull Econ Stat 59(4):523–544Google Scholar
  41. Carneiro P (2008) Equality of opportunity and educational achievement in Portugal. Port Econ J 7(1):17–41Google Scholar
  42. Castro F (2004) A survey-based investigation of the determinants of FDI in Portugal. The challenge of international business. In: The Challenge of International Business. Palgrave Macmillan, London, pp 254–289Google Scholar
  43. Cavanaugh A, Breau S (2018) Locating geographies of inequality: publication trends across OECD countries. Reg Stud 52(9):1225–1236Google Scholar
  44. Centeno M, Novo AA (2014) When supply meets demand: wage inequality in Portugal. IZA J Eur Labor Stud 3 (1): art. no. 23Google Scholar
  45. Chani MI, Jan SA, Pervaiz Z, Chaudhary AR (2014) Human capital inequality and income inequality: testing for causality. Qual Quant 48:149–156Google Scholar
  46. Chase-Dunn C (1975) The effects of international economic dependence on development and inequality: a cross-national study. Am Sociol Rev 40:720–738Google Scholar
  47. Cho HC, Ramirez MD (2016) Foreign direct investment and income inequality in southeast Asia: a panel unit root and panel cointegration analysis, 1990–2013. Atl Econ J 44(4):411–424Google Scholar
  48. Choi C (2006) Does foreign direct investment affect domestic income inequality? Appl Econ Let 13(12):811–814Google Scholar
  49. Costa AB (1984) Conceito de pobreza. Estudos Econ 4(3):275–296Google Scholar
  50. Costa A, Silva M, Pereirinha J, Matos M (1985) A pobreza em Portugal. Caritas, LisbonGoogle Scholar
  51. Costa AB (1994) The measurement of poverty in Portugal. J Eur Soc Policy 2:95–115Google Scholar
  52. Cremin P, Nakabugo MG (2012) Education, development and poverty reduction: a literature critique. Int J Educ Dev 32(4):499–506Google Scholar
  53. Crespo N, Fontoura MP, Proença I (2009) FDI spillovers at regional level: Evidence from Portugal. Pap Reg Sci 88(3):591–607Google Scholar
  54. Crespo N, Proença I, Fontoura MP (2012) The spatial dimension in FDI spillovers: Evidence at the regional level from Portugal. Reg Sect Econ Stud 12(1):95–110Google Scholar
  55. Crespo N, Moreira SB, Simões N (2013) Who are the poor? Who are the rich? Evidence for Portugal. Int J Soc Econ 40(6):579–590Google Scholar
  56. Dabla-Norris E, Kochhar K, Ricka, F, Suphaphiphat N, Tsounta E (2015) Causes and consequences of income inequality: a global perspective, International Monetary Fund, strategy, policy, and review department, SDN/15/13Google Scholar
  57. Deininger K, Squire L (1996) A new data set measuring income inequality. World Bank Econ Rev 10(3):565–591Google Scholar
  58. Deng W-S, Lin Y-C (2013) Parameter heterogeneity in the foreign direct investment-income inequality relationship: a semiparametric regression analysis. Empir Econ 45(2):845–872Google Scholar
  59. Dickey D, Jansen D, Thornton D (1991) A primer on cointegration with an application to money and income. In: Rao B (ed) Cointegration for the applied economist. Macmillan, Basingstoke, pp 58–78Google Scholar
  60. Dollar D, Kraay A (2002) Growth is good for the poor. J Econ Growth 7(3):195–225Google Scholar
  61. Duarte R, Ferrando-Latorre S, Molina JA (2018) How to escape poverty through education?: intergenerational evidence in Spain. Appl Econ Lett 25(9):624–627Google Scholar
  62. Dutta N, Kar S, Saha S (2017) Human capital and FDI: how does corruption affect the relationship? J Econ Anal Policy 56:126–134Google Scholar
  63. Economou F, Hassapis C (2015) Foreign direct investment inflows determinants in four south European economies. Invest Manag Fin Innov 12(3):182–189Google Scholar
  64. Enamorado T, López-Calva LF, Rodríguez-Castelán C, Winkler H (2016) Income inequality and violent crime: evidence from Mexico's drug war. J Dev Econ 120:128–143Google Scholar
  65. Engle R, Granger C (1987) Co-integration and error correction: representation, estimation and testing. Econometrica 55:251–276Google Scholar
  66. Faria JR (2015) Location clusters, FDI and Local Entrepreneurs: Consistent Public Policy. J Know Econ 7:1–11Google Scholar
  67. Farinha CF (Coord), Figueiras R, Junqueira V (2012) Desigualdade Económica em Portugal. Lisbon: Fundação Francisco Manuel dos SantosGoogle Scholar
  68. Farinha CF (Coord), Figueiras R, Junqueira V (2016) Desigualdade do Rendimento e Pobreza em Portugal: As consequências sociais do programa de ajustamento. Lisbon: Fundação Francisco Manuel dos SantosGoogle Scholar
  69. Feenstra RC, Hanson GH (1996) Globalization, outsourcing, and wage inequality. Am Econ Rev 86(2):240–245Google Scholar
  70. Fernandes C, Crespo N, Simões N (2016) Poverty, richness, and inequality: Evidence for Portugal using a housing comfort index. J Econ Soc Meas 41:371–394Google Scholar
  71. Ferreira LV (1994) Pobreza infantil em Portugal and década de 80. Est Econ 14(4):451–464Google Scholar
  72. Ferreira LV (2000) A pobreza em Portugal na década de oitenta. Séries ‘Estudos e Documentos’. Conselho Económico e Social, LisboaGoogle Scholar
  73. Ferreira LV (2005) Dinâmica de rendimentos, persistência da pobreza e políticas sociais em Portugal. Sociedade e Trabalho 26:101–117Google Scholar
  74. Ferreira LV (2008) Persistent poverty: Portugal and the Southern European welfare regime. Eur Soc 10(1):49–72Google Scholar
  75. Figin P, Görg H (2011) Does foreign direct investment affect wage inequality? An empirical investigation. World Econ 34:1455–1475Google Scholar
  76. Figueiredo O, Guimarães P (1996) O Investimento Directo Estrangeiro na Indústria Transformadora Portuguesa: Uma Análise Sectorial e Regional Através do Emprego para o Período 1982-1992. Estudos Econ 16(3):333–358Google Scholar
  77. Figueiredo O, Guimarães P, Woodward D (2002) Home-field advantage: location decisions of Portuguese entrepreneurs. J Urban Econ 52(2):341–361Google Scholar
  78. Flôres RG, Fontoura MP, Santos RG (2007) Foreign direct investment spillovers in Portugal: Additional lessons from a country study. European J Dev Res 19(3):372–390Google Scholar
  79. Forte R, Sarmento MP (2014) Does FDI increase market concentration? An evaluation of the Portuguese manufacturing industries. Acta Oecon 64(4):463–480Google Scholar
  80. Fowowe B, Shuaibu MI (2014) Is foreign direct investment good for the poor? New evidence from African countries. Econ Chang Restruct 47(4):321–339Google Scholar
  81. Franco C, Gerussi E (2013) Trade, foreign direct investments (FDI) and income inequality: empirical evidence from transition countries. J Int Trade and Econ Dev 22(8):1131–1160Google Scholar
  82. Ghysels E, Miller I (2014) On the size distortion from linearly interpolating low-frequency series for Cointegration tests, In Yoosoon Chang, Thomas B. Fomby, Joon Y. Park (ed.) Essays in honor of Peter C. B. Phillips (advances in econometrics, volume 33) Emerald Group Publishing Limited, pp.93 – 122Google Scholar
  83. Girling R (1973) Dependency and persistent income inequality. In: Bonilla F, Girling R (eds) Structures of dependency. Institute of Political Studies, Stanford, CA, pp 83–101Google Scholar
  84. Girma S, Greenaway D, Wakelin K (2013) Who benefits from foreign direct investment in the UK? Scot J Polit Econ 60(5):560–574Google Scholar
  85. Gohou G, Soumaré I (2012) Does foreign direct investment reduce poverty in Africa and are there regional differences? World Dev 40(1):75–95Google Scholar
  86. Gopinath M, Chen W (2003) Foreign direct investment and wages: a cross-country analysis. J Int Trade Econ Develop 12(3):285–309Google Scholar
  87. Gouveia M, Tavares J (1995) The distribution of household income and expenditure in Portugal: 1980 and 1990. Rev Income Wealth 41(1):1–17Google Scholar
  88. Grande M, Teixeira AAC (2012) Corruption and multinational companies' entry modes - Do linguistic and historical ties matter? South African J Econ Manag Sc 15(3):269–281Google Scholar
  89. Grossman G, Helpman E (1991) Innovation and growth in the global economy. The MIT Press, CambridgeGoogle Scholar
  90. Guilera J (2010) The evolution of top income and wealth shares in Portugal since 1936. J Iberian Latin American Econ Hist 28-1:139–171Google Scholar
  91. Guimarães P, Figueiredo O, Woodward D (2000) Agglomeration and the location of foreign direct investment in Portugal. J Urban Econ 47(1):115–135Google Scholar
  92. Harrison A, McLaren J, McMillan M (2011) Recent perspectives on trade and inequality. Annu Rev Econ 3:261–289Google Scholar
  93. Hartog J, Pereira PT, Vieira JAC (2000) Inter-industry wage dispersion in Portugal. Empirica 27(4):353–364Google Scholar
  94. Haughton J, Khandker SR (2009) Handbook on poverty and inequality, Washington: the International Bank for Reconstruction and Development/The World BankGoogle Scholar
  95. Herze D, Nunnenkamp P (2013) Inward and outward FDI and income inequality: evidence from Europe. Rev World Econ 149(2):395–422Google Scholar
  96. Hidalgo-Hidalgo M, Iturbe-Ormaetxe I (2018) Long-run effects of public expenditure on poverty. J Econ Inequal 16(1):1–22Google Scholar
  97. Huang C, Teng K, Tsai P (2010) Inward and outward foreign direct investment and poverty: East Asia vs. Latin America. Rev World Econ 146(4):763–779Google Scholar
  98. Huang J, Wu S, Deng S (2016) Relative income, relative assets, and happiness in urban China. Soc Indic Res 126(3):971–985Google Scholar
  99. Huang Y, Zhang Y (2017) Wage, foreign-owned firms, and productivity spillovers via labour turnover: a non-linear analysis based on Chinese firm-level data. Appl Econ 49(20):1994–2010Google Scholar
  100. Hussain S, Chaudhr IS, Hasan M (2009) Globalization and income distribution: evidence from Pakistan. Eur J Soc Sci 8(4):683–691Google Scholar
  101. ILO (2016) World employment and social outlook: trends 2016. International Labour Organization, GenevaGoogle Scholar
  102. INE (2010) On poverty, inequality and material deprivation in Portugal. Instituto Nacional de Estatística, LisbonGoogle Scholar
  103. Israel AO (2014) Impact of foreign direct investment on poverty reduction in Nigeria. J Econ Sust Dev 5(20):34–45Google Scholar
  104. ISSC IDS, UNESCO (2016), World Social Science Report 2016, Challenging Inequalities: Pathways to a Just World, UNESCO Publishing, ParisGoogle Scholar
  105. Jalilian H, Weiss J (2002) Foreign direct investment and poverty reduction in the ASEAN region. ASEAN Econ Bull 19(3):231–253Google Scholar
  106. Johansen S, Juselius K (1990) Maximum likelihood estimation and inference on cointegration with application to the demand for money. Oxf Bull Econ Stat 52:169–209Google Scholar
  107. Júlio P, Pinheiro-Alves R, Tavares J (2013) Foreign direct investment and institutional reform: evidence and an application to Portugal. Port Econ J 12(3):215–250Google Scholar
  108. Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econ 90(1):1–44Google Scholar
  109. Kaulihowa T, Adjasi C (2018) FDI and income inequality in Africa. Oxf Dev Stud 46(2):250–265Google Scholar
  110. Kuznets S (1955) Economic growth and income inequality. Am Econ Rev 45(1):1–28Google Scholar
  111. Lains P, Silva EG, Guilera J (2013) Wage inequality in a developing open economy: Portugal, 1944–1984. Scand Econ Hist Rev 61(3):287–311Google Scholar
  112. Lee J-E (2006) Inequality and globalization in Europe. J Policy Model 28(7):791–796Google Scholar
  113. Lee KK (2014) Globalization, Income Inequality and Poverty: Theory and Empirics, in http://r-cube.ritsumei.ac.jp/repo/repository/rcube/5827/BKS28_lee.pdf, last accessed on December 2018
  114. Lee J-W, Lee H (2018) Human capital and income inequality, ADBI working paper 810. Tokyo: Asian Development Bank Institute. Available: https://www.adb.org/publications/human-capital-and-income-inequality, last accessed in August 2018
  115. Leitão NC, Faustino HC (2010) Portuguese foreign direct investments inflows: an empirical investigation. Int Res J Financ Econ 38:190–197Google Scholar
  116. Leite AN, Machado JF, Cúrdia V (2001) Portugal Como Destino do Investimento Directo Estrangeiro: Estado da competitividade da Economia Nacional. Câmara do Comércio Americano em Portuga, LisboaGoogle Scholar
  117. Lin J-L (2007) Notes on Testing Causality, in http://faculty.ndhu.edu.tw/~jlin/files/causality.pdf, last accessed in August 2018
  118. Lopes JS (1996) A Economia Portuguesa desde 1960. Gradiva, LisbonGoogle Scholar
  119. Lopes TS, Simões VC (2018) Foreign investment in Portugal and knowledge spillovers: from the Methuen treaty to the 21st century, business history, 1–28. Article in PressGoogle Scholar
  120. López H, Servén L (2015) Too Poor to Grow, Central Banking, Analysis, and Economic Policies Book Series, in: Ricardo J. Caballero & Klaus Schmidt-Hebbel (ed.), Economic Policies in Emerging-Market Economies Festschrift in Honor of Vittorio Corbo, edition 1, volume 21, chapter 13, pages 309–350, Central Bank of ChileGoogle Scholar
  121. Lütkepohl H (2007) General-to-specific or specific-to-general modelling? An opinion on current econometric terminology. J Econ 136(1):319–324Google Scholar
  122. Ma Q-P (2013) Inter- and intra-industry wage inequality and potential impact of automation in the economy, wages and employment: economics, Structure and Gender Differences, pp. 97–126Google Scholar
  123. Magombeyi MT, Odhiambo NM (2017) Foreign direct investment and poverty reduction. Comp Econ Res 20(2):73–89Google Scholar
  124. Magombeyi MT, Odhiambo NM (2018a) Dynamic impact of FDI inflows on poverty reduction: empirical evidence from South Africa. Sustain Cities Soc 39:519–526Google Scholar
  125. Magombeyi MT, Odhiambo NM (2018b) FDI inflows and poverty reduction in Botswana: an empirical investigation. Cogent Econ Fin 6(1):1–15Google Scholar
  126. Mah JS (2012) Foreign direct investment, labour unionization and income inequality of Korea. Appl Econ Lett 19(15):1521–1524Google Scholar
  127. Mah JS (2015) The effect of foreign direct investment inflows on income inequality: evidence from China. Glob Econ J 15(4):443–453Google Scholar
  128. Mahmood H, Chaudhary AR (2012) A contribution of foreign direct investment in poverty reduction in Pakistan. Middle-East J Sci Res 12(2):243–248Google Scholar
  129. Majeed MT (2017) Inequality, FDI and economic development: evidence from developing countries. Singap Econ Rev 62(5):1039–1057Google Scholar
  130. Malerba G, Spreafico MRM (2015) The rich and the poor in the European Union and the great recession: some empirical evidence. Rivista Internazionale di Scienze Sociali 2:211–242Google Scholar
  131. Mamede RP, Godinho MM, Simões VC (2014) Industrial Policy in Portugal: History, results and future challenges. Structural Change, Competitiveness and Industrial Policy. Painful Lessons from the European Periphery, Ed. by A.A.C. Teixeira, E. Silva, and R. Mamede, 258–277. Oxon: RoutledgeGoogle Scholar
  132. Martins PS (2004) Do foreign firms really pay higher wages? Evidence from different estimators, IZA Discussion Papers 1388, Institute for the Study of Labor (IZA)Google Scholar
  133. Martins PS (2011) Paying more to hire the best? Foreign firms, wages, and worker mobility. Econ Inq 49(2):349–363Google Scholar
  134. Matos LS de (1973) Investimentos estrangeiros em Portugal: alguns aspectos. Lisboa: Seara NovaGoogle Scholar
  135. Moreira AC (2008) Upstream linkages between TNCs and local suppliers: evidences from Portugal, world review of science. Tech Sustain Dev 5(1):28–48Google Scholar
  136. Melo I, Ferreira-Lopes A, Monteiro H (2015) Regional and sectoral foreign direct investment in Portugal since joining the European union: A dynamic portrait. Rev Urban Reg Dev Stud 27(3):197–229Google Scholar
  137. Mota I, Brandão A (2013) The determinants of location choice: Single plants versus multi-plants. Pap Reg Sci 92(1):31–49Google Scholar
  138. Naschold F (2002), Why inequality matters for poverty, inequality briefing - Briefing Paper No 2 (2 of 3): 1–6Google Scholar
  139. Neagu O, Dumiter F, Braica A (2016) Inequality, economic growth and trade openness: a study case for central and eastern countries (ECE). Amfiteatru Econ 18(43):557–574Google Scholar
  140. Nogueira MC, Afonso O, Soukiazis E (2018) Skill premium in Portuguese manufacturing industries. Appl Econ Lett 25(14):1015–1018Google Scholar
  141. Nunnenkamp P, Schweickert R, Wiebelt M (2007) Distributional effects of FDI: how the interaction of FDI and economic policy affects poor households in Bolivia. Dev Policy Rev 25(4):429–450Google Scholar
  142. OECD (2002) Foreign Direct Investment for Development. Maximising Benefits, Minimising Costs. Overview. Paris: OECDGoogle Scholar
  143. OECD (2008) The social impact of foreign direct investment, policy briefing, OECD observer. Paris: OCED, in https://wwwoecdorg/els/emp/The-Social-Impact-of-foreign-direct-investmentpdf, last accessed in August 2018
  144. OECD (2012) Economic policy reforms: going for growth 2012. OECD, ParisGoogle Scholar
  145. OECD (2016), Society at a Glance 2016: OECD social indicators, OECD Publishing, Paris,  https://doi.org/10.1787/9789264261488-en
  146. Pedroso P (2014) Portugal and the Global Crisis. The impact of austerity on the economy, the social model and the performance of the state, Friedrich-Ebert-Stiftung project ‘Social Cohesion and the State in Times of Austerity’, Berlin: Friedrich-Ebert-StiftungGoogle Scholar
  147. Pereira J, Galego A (2011) Regional wage differentials in Portugal: Static and dynamic approaches. Pap Reg Sc 90(3):529–548Google Scholar
  148. Pereirinha J (1994) Spatial location of social exclusion in Portugal. CISEP. In: Observatory on National Policies to Combat Social ExclusionGoogle Scholar
  149. Pereirinha J (1995) Poverty and social exclusion in Portugal: a general overview of situations, processes and policies. Druzboslovne Razprave 11(19–20):169–182Google Scholar
  150. Perera LDH, Lee GHY (2013) Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia? J Asian Econ 27:71–86Google Scholar
  151. Perez SA, Matsaganis M (2018) The political economy of austerity in southern Europe. New Polit Econ 23(2):192–207Google Scholar
  152. Reiter SL, Steensma HK (2010) Human development and foreign direct investment in developing countries: The influence of FDI policy and corruption. World Dev 38(12):1678–1691Google Scholar
  153. Resmini L (2013) FDI in services in European regions: an overview. In: Cuadrado-Roura J (ed) Service industries and regions. Advances in spatial science (the regional science series). Springer, Berlin, HeidelbergGoogle Scholar
  154. Rodrigues, CF (1993) The measurement and decomposition of inequality in Portugal, 1980/811989/90. Microsimulation Unit Discussion Paper MU9302, Department of Applied Economics, Cambridge.Google Scholar
  155. Rodrigues CF (2007) Distribuição do rendimento, desigualdade e pobreza nos anos 90. Coleções Económicas, II Série, n° 5, AlmedinaGoogle Scholar
  156. Rodrigues CF (Coord), Figueiras R, Junqueira V (2012) Desigualdade Económica em Portugal, Lisbon: Fundação Francisco Manuel dos SantosGoogle Scholar
  157. Rodrigues CF (Coord), Figueiras R, Junqueira V (2016) Desigualdade do Rendimento e Pobreza em Portugal: As consequências sociais do programa de ajustamento, Lisbon: Fundação Francisco Manuel dos SantosGoogle Scholar
  158. Rodríguez WK, Albornoz RS (2016) Foreign direct investment and income inequality in Latin American countries: a panel data cointegration approach. Cuadernos de Economia (Colombia) 35(68):433–455Google Scholar
  159. Roser M, Cuaresma JC (2016) Why is income inequality increasing in the developed world? Rev Income Wealth 62(1):1–27Google Scholar
  160. Royo S, Manuel PC (eds) (2005) Spain and Portugal in the European Union: the first fifteen years. Frank Cass, LondonGoogle Scholar
  161. Saltz IS (1992) The negative correlation between foreign direct investment and economic growth in the third world: theory and evidence. Rivista Internazionale di Science Economiche e Commericiali 39:617–633Google Scholar
  162. Santana P (2002) Poverty, social exclusion and health in Portugal. Soc Sci Med 55:33–45Google Scholar
  163. Sapkota JB (2011) Mainstreaming globalisation in Poverty Reduction Strategy Papers in the Asia-Pacific region. Dev Pract 21(7):999–1012Google Scholar
  164. Seven U, Coskun Y (2016) Does financial development reduce income inequality and poverty? Evidence from emerging countries. Emerg Mark Rev 26:34–63Google Scholar
  165. Shahbaz M, Leitão NC, Malik S (2011) Foreign direct investment-economic growth nexus: the role of domestic financial development in Portugal. Econ Bull 31(4):2824–2838Google Scholar
  166. Shamim A, Azeem P, Naqvi MA (2014) Impact of foreign direct investment on poverty reduction in Pakistan. Int J Acad Res Bus Soc Sci 4(10):465–490Google Scholar
  167. Silva M (1982) Crescimento económico e pobreza em Portugal (1950-1974). Análise Social 18(3/4/5):1077–1086Google Scholar
  168. Silva M (1984) Uma estimativa da pobreza em Portugal em abril de 1974. Cadernos de Ciências Sociais 1:117–134Google Scholar
  169. Silva M (1985) A repartição do rendimento em Portugal no pós abril 74. Revista Crítica de Ciências Sociais 15(16/17):269–279Google Scholar
  170. Silva A (2016) Multinationals and foreign direct investment: the Portuguese experience (1900–2010). J Evolution Stud Bus 2:40–68Google Scholar
  171. Silva JR, Simões C (2012) Portuguese exports and FDI: observations from the firms perspective. China-USA Bus Rev 11(6):820–835Google Scholar
  172. Silva M, Costa A, Cardoso A, Pereirinha J, Pimenta M, Sequeira M, Maranhão M (1989) Pobreza Urbana em Portugal. Cáritas, LisboaGoogle Scholar
  173. Silva A, Afonso O, Africano AP (2013) Which Firms are the Most Innovative? The Importance of Multinationals and Exporters in Portugal. Acta Oecon 63(2):157–184Google Scholar
  174. Simões VC (1988) Portugal and FDI attraction - a multi-criteria approach. Manag Int Rev 28(4):42–52Google Scholar
  175. Simões VC (1992) European Integration and the Pattern of FDI Inflow in Portugal. Multinational investment in modern Europe: strategic interaction in the integrated community, ed. by John Cantwell. Cheltenham: Edward ElgarGoogle Scholar
  176. Simões VC (1993) Impacto do Investimento Direto Estrangeiro (IDE) na Estrutura Industrial Portuguesa. In: Lisbon: DGIGoogle Scholar
  177. Simões VC, Cartaxo RM (2013) Portugal: inward FDI and its policy context, 2011. In: Sauvant K, Mallampally P, McAllister G (eds) Inward and outward FDI country profiles. Vale Columbia Center, New York, pp 479–512Google Scholar
  178. Simões N, Crespo N, Moreira SB, Varum CA (2016) Measurement and determinants of health poverty and richness: evidence from Portugal. Empir Econ 50(4):1331–1358Google Scholar
  179. Soumare I (2015) Does foreign direct investment improve welfare in North Africa? Appl Econ 47(51):5510–5533Google Scholar
  180. Stiglitz JE (2012) The Price of inequality: how Today’s divided society endangers our future. W.W. Norton, New YorkGoogle Scholar
  181. Sumner A (2005) Is foreign direct investment good for the poor? A review and stocktake. Dev Pract 15(3/4):269–285Google Scholar
  182. Sylwester K (2005) Foreign direct investment, growth and income inequality in less developed countries. Int Rev Appl Econ 19(3):289–300Google Scholar
  183. Tavares-Lehmann AT (2007) Public Policy, FDI Attraction and Multinational Subsidiary Evolution: The Contrasting Cases of Ireland and Portugal. In Multinationals on the Periphery, Ed. by Gabriel R.G. Benito, and Rajneesh Narula, 131–157. New York: Palgrave Macmillan.Google Scholar
  184. Te Velde D, Morrissey O (2004) Foreign direct investment, skills and wage inequality in East Asia. J Asia Pac Econ 9(3):348–369Google Scholar
  185. Teixeira AAC, Fortuna N (2010) Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001. Res Policy 39(3):335–350Google Scholar
  186. Teixeira AAC, Tavares-Lehmann AT (2014) Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter? Res Policy 43:737–748Google Scholar
  187. Teixeira AAC, Guimarães L (2015) Corruption and FDI: does the use of distinct proxies for corruption matter? J Afr Bus 16(1–2):159–179Google Scholar
  188. Toda HY, Yamamoto T (1995) Statistical inference in vector autoregressions with possibly integrated processes. J Econ 66(1–2):225–250Google Scholar
  189. Todaro MP (1997) Economic development. Longman, LondonGoogle Scholar
  190. Torres M, Varum C (2012) Firms' capabilities, public support and foreign direct investment. Progress in International Business Research ch.3:59–88Google Scholar
  191. Tsai P-L, Huang C-H (2007) Openness, growth and poverty: the case of Taiwan. World Dev 35(11):1858–1871Google Scholar
  192. Ucal M (2014) Panel data analysis of foreign direct investment and poverty from the perspective of developing countries. Procedia Soc Behav Sci 109(8):1101–1105Google Scholar
  193. Ucal M, Haug AA, Bilgin MH (2016) Income inequality and FDI: evidence with Turkish data. Appl Econ 48(11):1030–1045Google Scholar
  194. UN (1981). A survey of National Sources of income distribution statistics, statistical papers, series M, No. 72., New York: United NationsGoogle Scholar
  195. UNCTAD (2018) World investment report 2018: investment and new industrial policies. United Nations, GenevaGoogle Scholar
  196. Uttama NP (2015) Foreign direct investment and the poverty reduction nexus in Southeast Asia, in Heshmati A, Maasoumi E, Wan G (eds.) Poverty reduction policies and practices in developing Asia, pp 281-298, SpringerGoogle Scholar
  197. Vieira JAC, Cardoso AR, Portela M (2005) Gender segregation and the wage gap in Portugal: an analysis at the establishment level. J Econ Ineq 3(2):145–168Google Scholar
  198. WB (2018) Thinking CAP. Supporting Agricultural Jobs and Incomes in the EU. EU Regular Economic Report 4. World Bank Report on the European Union. Washington DC: International Bank for Reconstruction and Development / The World Bank [in http://documentsworldbankorg/curated/en/892301518703739733/pdf/123443-repl-PUBLICpdf, last accessed on August 2018]
  199. Wood A (2018) The 1990s trade and wages debate in retrospect. World Econ 41(4):975–999Google Scholar
  200. Wu J-Y, Hsu C-C (2012) Foreign direct investment and income inequality: does the relationship vary with absorptive capacity? Econ Model 29(6):2183–2189Google Scholar

Copyright information

© ISEG – Instituto Superior de Economia e Gestão 2019

Authors and Affiliations

  1. 1.CEF.UP, Faculdade de Economia do PortoUniversidade do PortoPortoPortugal
  2. 2.INESC TECPortoPortugal
  3. 3.OBEGEFPortoPortugal

Personalised recommendations