Spain in the Investment Development Path

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Spain in the Investment Development Path
Jos M Campa
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G. The UK), and allowed labor costs to rise (United Nations 1992, table 2. 7). Yet inward FDI in non-financial services and in manufacturing has continued to pour into the country.
Fourth, inward FDI is now tilted more towards acquisitions than greenfield investment (Figure 3). Why have the most active foreign investors (i. E. EU firms making acquisitions) moved into an increasingly open economy to manufacture or to render non-financial services? In the case of 20 non-financial services, foreig
...n investors have acquired assets in order to overcome industry-level barriers to entry and to gain market share quickly. As regards manufacturing investments, most foreign firms have come to Spain not only to sell in an expanding domestic market (which is by now fairly open to competition from abroad) or to overcome industrial barriers to entry but also to locate value-added activities in the context of a world economy tending towards globalization. Furthermore, foreign firms are finding in Spain upgraded assets such as a skilled work force, clusters of support industries stimulated in part by prior inward FDI, and an improved infrastructure that allows them to use a Spanish location as an export base (e.

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