SUBJECT: INTERNATIONAL TRADE AND FOREIGN INVESTMENT
OLALLA LADO MARTÍNEZ
JOSÉ NOVO CHANTRES
1. INTRODUCTION_____________________________________________ 3
2. HISTORICAL SUCCESS OF LIBERALIZATION AND INSERTION IN THE GLOBAL ECONOMY_____________________________________ 4
3.FOREIGN INVESTMENT______________________________________ 6
4. EVOLUTION OF SPANISH FDI ________________________________ 9
5. FROM 2008 __________________________________________________ 10
5.1 INVESTMENT CLIMATE___________________________________ 10
2. ORIGIN OF INVESTMENT ________________________________ 12
5.3 SECTORS AND INVESTMENT ACTIVITIES_________________ 13
5.4 OPPORTUNITIES _________________________________________ 14
6. GREENFIELD PROJECTS AND REINVESTMENT IN SPAIN, 2008__ 15
1. Number of Projects _________________________________________ 15
2. Greenfield and Reinvestment Projects by Sector _________________ 16
3. Greenfield and Reinvestment Projects by Countries of Origin_____ 19
6. CONTRIBUTION OF FDI TO THE SPANISH ECONOMY__________ 20
1. General Points______________________________________________ 20
2. Contribution to GDP________________________________________ 21
3. Contribution to Employment _________________________________ 22
4. Contribution to Company Performance ________________________ 23
5.Contribution to Financing the Economy________________________ 25
7. CONCLUSIONS_______________________________________________ 26
9. BIBLIOGRAPHY _______________________________________________ 28
The final years of the last century witnessed a huge change in the position of Spain in international investment regarding Foreign Direct Investment (FDI) flows, asthis country transformed from net importer of capital to net exporter. These changes transferred very fast to the Spanish stock of this kind of assets and to the balance of payment by capital incomes that also went from negative to positive in the years of the new century.
Whereas foreign capital has been present in Spain for more than a century, with phases of intensive growth such as in theperiod just before and after its entry into the European Union, the significant presence of Spanish firms abroad is a very recent phenomenon and also an outstanding one, due to the firms rapid incorporation to the international production sphere. When FDI stocks are considered together, Spain’s financial integration into the international community has shown a drastic change in just fifteenyears, going from a clear backwardness compared to other developed countries (the sum of FDI assets and liabilities compared to GDP reached 16% in 1992), to play an active part in the field of international production (81% in 2007).
It is worth highlighting the increase in inward investment received since 1996. In recent years Spain is positioned as one of the main recipients of investmentworldwide. Proof of how highly developed the Spanish economy is, is the fact that, since 1997, the outward investment flows have outstripped inward investment flows.
Specifically, according to the UNCTAD, in 2008 Spain was the 6th largest recipient of foreign direct investment in the world, 4th in the EU. Moreover, Spain is also one of the main foreign direct investors in the world: $77 billion in2008 for a rank of 8th largest investor worldwide.
In this proyect we are trying to describe the actual situation of Foreign Direct Investment (FDI) in Spain.
At first we start with a short description of Spanish economic history in last forty years and secondly we describe in a few paragraphs the evolution of FDI in the same period
After that we focused on analyse the...