Foreign direct investment (FDI) influences host country's economic growth through several channels. Empirically, a variety of studies considers that FDI generate economic growth but others conclude that FDI is a source of negative effects. By reviewing existing theoretical and empirical literature, we intend to shed light on the main explanations for the mixed results. The main conclusion is that the effects of FDI on economic growth depend on the domestic conditions of the host country (e.g., human capital, economic and technological conditions, degree of openness of its economy). Thus, the host countries governments have a key role in creating the conditions that allow for the leverage of the positive effects or for the reduction of the negative effects of FDI on the host country's economic growth.

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Several authors have studied the factors that influence a firm's export performance, but few have addressed the relationship between industry characteristics and export intensity. The objective of the present study was to analyze the impact of industry characteristics on a firm's export intensity, the latter a measure commonly used to assess export performance, seeking to add empirical evidence to this relatively neglected research area. Based on a sample of 19,504 Portuguese manufacturing firms, 7,930 of which were exporting, during the period 2010-2013, and using panel data estimation, the empirical results show that some industry characteristics (labor productivity, export orientation, concentration), as well as characteristics of the firm (labor productivity, size and age of the firm) are important determinants of a firm's export intensity. It is concluded in particular that a firm's export intensity is positively affected by the export orientation of the industry, as well as by the firm's labor productivity, confirming the belief that firms and governments need to direct their policies towards increased productivity in order to improve competitiveness in foreign markets. It is argued that, in order to enhance the positive effects of these policies, the policies should be directed towards industries with the highest export focus.

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We analyse the impact of FDI on market concentration for the Portuguese manufacturing industries in the 2006–2009 period. Using panel data estimation, and after controlling for other determinants of industry concentration (entry barriers, market size, and growth), we found a significant negative impact of FDI on industry concentration. This finding is in line with the results of the empirical literature on other developed countries. Moreover, it supports the argument that FDI has positive effects on domestic firms, eventually through positive externalities, and contradicts the widespread view that in small economies FDI increases concentration. Overall, this study adds to the controversial literature on FDI and concentration, and it is the first study on this topic applied to Portugal.

Purpose The purpose of this paper is to contribute to the existing literature on the relationship between debt and firms’ performance, by focusing on the influence of the institutional framework on this relationship and on the role of macroeconomic variables in explaining performance. Design/methodology/approach The present work is based on a large sample of 48,840 manufacturing firms from nine European countries covering the 2008–2013 period and uses a fixed effects model. Findings Results show that the impact of debt on a firm’s performance depends on the measure of debt (short-term debt positively affects a firm’s performance, whereas long-term debt presents a negative relationship) and that the institutional framework is indeed affecting the relationship between debt and a firm’s performance: the positive effect of debt on a firm’s performance tends to be higher the greater the “efficiency of the legal system” and the greater the “credit market regulation.” Macroeconomic variables also play a key role in explaining performance. Originality/value Unlike most of the existing studies, which focus only on the relationship between debt and firms’ performance in a single country, the present work uses a sample of firms from nine countries with the purpose of filling a research gap and bringing new empirical evidence to this research area.

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PurposeBoth franchising and internationalisation are important subjects of study, but in the existent literature little attention has been given to these two topics combined. The purpose of this paper is to analyse the internationalisation through franchising, using as a case study the internationalisation process of Parfois, a specialised retail brand based in northern Portugal, and operating in the fashion accessories business.Design/methodology/approachA case study approach was adopted based on information collected from various sources, including the company's website, the World Bank database, some news reports about Parfois, and also from interviews with those responsible for the internationalisation of Parfois.FindingsThe authors have identified a clear pattern in the internationalisation process: the firm is willing to open its own stores in the European market, where it feels comfortable, allowing franchisees to assume the investment risk in other world regions, with particular relevance for the Middle East and Eastern Europe.Originality/valueIn the international competitive market, it is important for other retail brands to understand how a relatively small retail brand, based in a depressed European zone, is able to expand worldwide. Furthermore, the lack of existing literature about internationalisation through franchising in specialised retailing companies adds value to this study.