Oscar Bajo-Rubio, Ph.D., Departamento de Análisis Económico y Finanzas, Universidad de Castilla-La Mancha, Facultad de Derecho y Ciencias Sociales, Ronda de Toledo s/n, Ciudad Real, 13071, Spain
Foreign direct investment (FDI) has played a major role in the deep process of transformation experienced by the Spanish economy since the first 1960s, which has even intensified following the integration with the now European Union (EU) in 1986. The objective of this paper is to analyse the long-run effects of FDI in Spain, by estimating a production function including the foreign capital stock.