The Impact of Regulation on International Investment in Portugal
The Impact of Regulation on International Investment in Portugal examines how regulatory reforms could help Portugal build a more enabling and competitive environment for investment, in particular foreign direct investment (FDI). The report analyses trends and patterns of FDI activity in Portugal, including its broader economic, social and environmental benefits to Portugal. It gives an overview of the economy-wide and sector-specific regulatory settings in Portugal compared to selected European peer economies and provides an empirical analysis of the potential effects of domestic regulatory reforms on FDI. Foreign investors’ perceptions on Portugal’s business environment complement these findings. The report indicates potential areas for regulatory reforms and proposes policy measures to further improve Portugal’s investment climate and support efforts to attract and retain more FDI while strengthening its contribution to sustainable development in Portugal.
The perspective of foreign investors in Portugal
This chapter complements the assessment of Portugal’s regulatory framework for investment and broader business environment by conveying the findings of consultations held with foreign-owned businesses and foreign and domestic chambers of commerce in Portugal. It briefly discusses the motivations of foreign investors for choosing Portugal as an investment location. The chapter then reports businesses’ perceptions on various aspects of Portugal’s regulatory framework and business environment identified as potential obstacles in Chapter 2. This chapter also maps out consulted businesses’ use of government funding and incentives, describes the impact of the COVID‑19 pandemic and Russia’s war of aggression against Ukraine on their business activity and relays investors’ thoughts on how the government could better support companies in Portugal in their digital transformation and green transition.
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