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GTAP Resource #1726

"Macroeconomic effects of foreign direct investment in the Spanish economy"
by Blake, Adam, Antonio Gomez-Plana and Maria Latorre

The present paper analyses the effects of Foreign Direct Investment (FDI) in Spain using a Computable General Equilibrium (CGE) model. It is the first model that undertakes a general equilibrium framework to grasp the effects of multinationals for the Spanish case. And it is a first step in building one of only a few CGE models offering a complete description of the foreign sector. The model shows evidence of crowding out of domestic production after FDI inflows. Further, FDI outflows produce bigger effects on aggregate output than equivalent amounts of FDI inflows, which is an alarming sign for the Spanish economy as it is currently undergoing a process of delocalization.

Resource Details (Export Citation) GTAP Keywords
Category: 2005 Conference Paper
Status: Published
By/In: Presented at the 8th Annual Conference on Global Economic Analysis, Lübeck, Germany
Date: 2005
Version: Preliminary
Created: Latorre, M. (4/29/2005)
Updated: Latorre, M. (6/6/2005)
Visits: 2,028
No keywords have been specified.

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