Iberian market integration: A case study of Spanish investments in Lisbon Metropolitan Area (LMA)

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

In spite of being neighbours the economic relations between Portugal and Spain were not very significant, at least until recently. Each one of the countries chose different options after the Second World War (Spain's internal market permitted importsubstitution model, while Portugal's smaller scale and 'special relationship' with the UK encouraged greater openness) and some aspects of the common history (Spain invaded and stayed in Portugal during more than half a century) created some distrust reinforced by the unequal dimension of the neighbouring country. Portuguese and Spanish's joint EU adhesion, in 1986, contributed to regional integration through the reduction of trade barriers and investment restrictions. A common legal framework and the support of structural and cohesion funds unchained the process of economic growth and the creation of an Iberian market. FDI and trade flows intensified during the nineties assuming a key role in the integration process. This chapter considers the ongoing process of economic integration of Iberian economies, evident through the boom of trade and FDI flows and its impact on the competitiveness of both companies and territories. The focus is upon changing economic relations between Portugal and Spain and the way companies reorganise themselves to take advantage of the integration process. The aim is to assess the impact of Spanish investments in Portuguese and Spanish companies' strategies and perceptions on Iberian market integration based on a survey conducted on firms with Spanish capitals located in Lisbon Metropolitan Area (LMA).

Original languageEnglish
Title of host publicationRegional and Urban Developments in Portuguese-Speaking Countries
PublisherNova Science Publishers, Inc.
Pages7-28
Number of pages22
ISBN (Print)9781614708766
Publication statusPublished - 1 Oct 2012

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