Fonseca, MiguelMendonça, AntónioPassos, José2025-01-272025-01-272007Fonseca, Miguel; António Mendonça and José Passos .(2007). “The investment development path hypothesis : evidence from the portuguese case”, The 6th Inha – Le Havre International Conference, Incheon, Republic of Korea. 10th- 11 th October, 2007http://hdl.handle.net/10400.5/97820Looking at the transformations that took place in the world economy after Second World War, as a result of liberalization, deregulation and market opening process, one of the most striking features was the significant expansion of Foreign Direct Investment. So, the main purpose of this paper is to discuss the positioning of Portugal – a small open economy in the extreme west of Europe – in this context. Our analysis is based on the Investment Development Path (IPD) theory, according to which the inward investment position of a country is tied with its economic development. In this research, the hypothesis is estimated empirically for the Portugal and the other 25 countries in different stages of development, using fixed-effects panel data models. Generally, our results find support for IDP paradigm, although it is impossible to capture all the stage predicted theoretically, given the lack of heterogeneity between the most countries of our sample and the relatively short time period considered.engForeign Direct InvestmentMultinational EnterprisesInvestment Developemnt Pathjournal article