This paper presents a framework developed to explain the private capital flows between the rest of the world and a small economy. Despite its simplicity, this framework - based on the monetary premium theory - brings answers to several questions regarding the capital flows phenomena, including...

This paper investigates the impact of foreign direct investment on the productivity performance of domestic firms in Portugal. The data comprise nine manufacturing sectors for the period 1992-95. Relatively to previous studies, model specification is improved by taking into consideration several...