Premium
Has the crisis affected Spanish investment strategy abroad? A spatial panel data approach
Author(s) -
GutiérrezPortilla Paula,
Maza Adolfo,
Villaverde José
Publication year - 2019
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12740
Subject(s) - foreign direct investment , panel data , recession , economics , financial crisis , sample (material) , investment (military) , international economics , great recession , macroeconomics , monetary economics , econometrics , labour economics , political science , politics , chemistry , chromatography , law
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.