Amb motiu del tancament d'estiu, la validació de documents es reprendrà a partir del 28 d'agost de 2026. Disculpeu les molèsties.
Con motivo del cierre de verano, la validación de documentos se reanudará a partir del 28 de agosto de 2026. Disculpad las molestias
Due to the summer closure, document validation will resume starting August 28, 2026. We apologize for any inconvenience.

Files

IEB15-18_CostaCampi.pdf (1.27 MB)

Document type

Working paper

Publication date

2015

Publication license

cc-by-nc-nd, (c) Costa et al., 2015
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/115373

Are energy market integrations a green light for FDI?

Journal Title

Authors

Director/Tutor

Journal ISSN

Volume Title

Related resource

Abstract

This paper studies the effect of energy market integration (EMI) on foreign direct investment (FDI). EMIs diminish energy uncertainty and price volatility in the host country and affect FDI through two channels: first, by harmonizing energy prices and, second, by reducing price dispersion. FDI may, as a result, increase both within and outside the EMI area, through energy stability mechanisms and price mechanisms, respectively. An empirical application on a global dataset including bilateral FDI data, during 2003-2012, using the gravity equation, shows that the integration of Portugal and Spain's electricity market in 2007 increased the amount of FDI's participants. Additionally, a positive increase in FDI from neighboring countries (in this instance, France), albeit lower in magnitude, is observed.

Subject

Energia, Recerca industrial, Innovacions tecnològiques

Subject (English)

Energy, Industrial research, Technological innovations

Citation

Collections

IEB (Institut d’Economia de Barcelona) – Working Papers

Citation

COSTA, M. Teresa (Maria Teresa), PANIAGUA, Jordi and TRUJILLO-BAUTE, Elisa. Are energy market integrations a green light for FDI?. IEB Working Paper 2015/18. [consulted: 10 of August of 2026]. Available at: https://hdl.handle.net/2445/115373

Export metadata

JSON - METS

Share record