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Do Inward Investors Achieve their Job Targets?

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  • Jonathan Jones
  • Colin Wren

Abstract

The paper utilizes data for north‐east England over the period 1985–98 to examine if foreign‐owned start‐up plants achieve their job targets. Different models are estimated, each shedding light on the relationship between the jobs promised by plants in their initial investment and their actual employment attained. On average, it is found that the plants achieve their job targets, but larger plants fall someway short. It is argued that these plants may deliberately overstate the number of jobs, and that the employment‐creation claims of inward investors and economic development agencies should be treated with skepticism.

Suggested Citation

  • Jonathan Jones & Colin Wren, 2004. "Do Inward Investors Achieve their Job Targets?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 483-513, September.
  • Handle: RePEc:bla:obuest:v:66:y:2004:i:4:p:483-513
    DOI: 10.1111/j.1468-0084.2004.00090.x
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    References listed on IDEAS

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    1. Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
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    4. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322, World Scientific Publishing Co. Pte. Ltd..
    5. Harris, Richard & Robinson, Catherine, 2004. "Productivity Impacts and Spillovers from Foreign Ownership in the United Kingdom," National Institute Economic Review, National Institute of Economic and Social Research, vol. 187, pages 58-75, January.
    6. Driffield, Nigel, 1999. "Indirect Employment Effects of Foreign Direct Investment into the UK," Bulletin of Economic Research, Wiley Blackwell, vol. 51(3), pages 207-221, July.
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    8. Nigel Driffield, 2001. "The Impact on Domestic Productivity of Inward Investment in the UK," Manchester School, University of Manchester, vol. 69(1), pages 103-119, January.
    9. Stephen Hill & Max Munday, 1994. "The Regional Distribution of Foreign Manufacturing Investment in the UK," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-13101-3, December.
    10. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988. "Patterns of Firm Entry and Exit in U.S. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 495-515, Winter.
    11. Jonathan Jones & Colin Wren, 2004. "Inward foreign direct investment and employment: a project-based analysis in north-east England," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 517-543, November.
    12. Pain, Nigel, 1993. "An Econometric Analysis of Foreign Direct Investment in the United Kingdom," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(1), pages 1-23, February.
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    Cited by:

    1. Jones, Jonathan & Wren, Colin, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
    2. Jonathan Jones & Colin Wren, 2008. "FDI Location Across British Regions and Inward Investment Policy," SERC Discussion Papers 0013, Centre for Economic Performance, LSE.
    3. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers 0003, Centre for Economic Performance, LSE.
    4. Colin Wren & Jonathan Jones, 2012. "On the Relative Importance of Intermediate and Non-Intermediate Goods for FDI Location: A New Approach," ERSA conference papers ersa12p165, European Regional Science Association.
    5. Jonathan Jones & Colin Wren, 2008. "Foreign Direct Investment and Prospects for the Northern Region," SERC Discussion Papers 0004, Centre for Economic Performance, LSE.
    6. Jones, Jonathan & Wren, Colin, 2011. "On the relative importance of agglomeration economies in the location of FDI across British regions," LSE Research Online Documents on Economics 58526, London School of Economics and Political Science, LSE Library.
    7. Wren, Colin & Jones, Jonathan, 2009. "Re-investment and the survival of foreign-owned plants," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 214-223, March.
    8. Jonathan Jones & Colin Wren, 2011. "On the Relative Importance of Agglomeration Economies in the Location of FDI Across British Regions," SERC Discussion Papers 0089, Centre for Economic Performance, LSE.
    9. Colin Wren & Jonathan Jones, 2011. "Assessing The Regional Impact Of Grants On Fdi Location: Evidence From U.K. Regional Policy, 1985–2005," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 497-517, August.
    10. Jones, Jonathan & Wren, Colin, 2008. "Foreign direct investment and prospects for the northern region," LSE Research Online Documents on Economics 33137, London School of Economics and Political Science, LSE Library.
    11. Jones, Jonathan & Wren, Colin, 2008. "FDI location across British regions and inward investment policy," LSE Research Online Documents on Economics 33204, London School of Economics and Political Science, LSE Library.

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