Reverse FDI in Europe: an analysis of Angola's FDI in Portugal

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Periodical article

Title:	Reverse FDI in Europe: an analysis of Angola's FDI in Portugal
Authors:	Barros, Carlos Pestana Damásio, Bruno Faria, Joao Ricardo
Year:	2014
Periodical:	African Development Review (ISSN 1467-8268)
Volume:	26
Issue:	1
Pages:	160-171
Language:	English
Geographic terms:	Angola Portugal
Subjects:	foreign investments international economic relations imports corruption economic aid
External link:	https://doi.org/10.1111/1467-8268.12072
Abstract:	This paper analyses foreign direct investment (FDI) of Angola in Portugal. The reverse investment of African countries in Europe is a recent economic event that needs to be analysed, theoretically explained and empirically tested. A dynamic theoretical model is presented and a Bayesian model tests the model validating it. The results reveal that imports and corruption increase Angola's FDI in Portugal. Some variables negatively affect Angola's FDI in Portugal: lagged Angolan FDI, signifying an autoregressive negative effect in Portugal; the Portuguese official development assistance (ODA) to Angola, which are direct transfers from Portugal to Angola; and Angola's GDP. Policy implications are discussed. Bibliogr., notes, sum. [Journal abstract]