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Exploring the Regional Distribution of Inbound Foreign Direct Investment in the UK in Theory and Practice: Evidence from a Five-Region Study

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  • Grahame Fallon
  • Mark Cook

Abstract

Fallon G. and Cook M. Exploring the regional distribution of inbound foreign direct investment in the UK in theory and practice: evidence from a five-region study, Regional Studies. This paper examines the main factors that attract inbound foreign direct investment (FDI) at the UK regional level using econometric data from five sample UK regions (the South East, the West Midlands, the North West, Wales, and Scotland) broadly representing the country's regional economic divide. The findings indicate that regional and national (but not European Union-level) factors, linked to several underlying strategic determinants, help determine the regional distribution of inbound foreign direct investment, and its inter-regional variation. The paper concludes that governmental policy-makers at the national and regional levels can have an important role to play in drawing targeted foreign direct investment inflows to the UK regions. [image omitted] Fallon G. et Cook M. Examiner la distribution regionale de l'IDE au Royaume-Uni, en theorie et en pratique: des preuves provenant d'une etude a cinq regions, Regional Studies. A partir des donnees econometriques provenant d'un echantillon de cinq regions au Royaume-Uni (a savoir, le Sud-Est; les West Midlands, le Nord-Ouest, le Pays de Galles et l'Ecosse) qui representent grosso modo le clivage economique regional du pays, cet article cherche a examiner les facteurs qui attirent l'investissement direct etranger (IDE) au Royaume-Uni sur le plan regional. Les resultats laissent voir que des facteurs d'envergure a la fois regionale et nationale (mais non pas au niveau de l'Ue), lies a plusieurs determinants strategiques sous-jacents, contribuent a la delimitation de la distribution regionale de l'investissement direct etranger et de sa variation interregionale. En guise de conclusion, l'article affirme que les decideurs aux niveaux national et regional pourraient jouer un role important dans la determination des flux d'investissement etranger qui visent le Royaume-Uni. Localisation de l'investissement direct etranger (IDE) Regions du R-U Determinants strategiques Motifs specifiques Implications pour la politique du gouvernement Fallon G. und Cook M. Untersuchung der regionalen Aufteilung von in Grossbritannien eintreffenden auslandischen Direktinvestitionen in Theorie und Praxis - Belege aus einer Studie unter funf Regionen, Regional Studies. In diesem Beitrag untersuchen wir die wichtigsten Faktoren, die auf der Regionalebene Grossbritanniens auslandische Direktinvestitionen anziehen. Hierfur verwenden wir okonometrische Daten aus funf britischen Regionen (Sudosten, West Midlands, Nordwesten, Wales und Schottland), die die regionale wirtschaftliche Teilung des Landes ungefahr reprasentieren. Aus den Ergebnissen geht hervor, dass regionale und nationale Faktoren (nicht jedoch Faktoren auf EU-Ebene), verknupft mit mehreren zugrundeliegenden strategischen Determinanten, zur Festlegung der regionalen Aufteilung der eintreffenden auslandischen Direktinvestitionen und ihrer interregionalen Schwankungen beitragen. Wir ziehen das Fazit, dass die Regierungspolitiker auf nationaler und regionaler Ebene eine wichtige Rolle dabei spielen konnen, auslandische Direktinvestitionen zielgerichtet in britische Regionen anzuziehen. Standort von eintreffenden auslandischen Direktinvestitionen Britische Regionen Strategische Determinanten Spezifische Motive Konsequenzen fur Regierungspolitik Fallon G. y Cook M. Analisis de la distribucion regional de la IED en el Reino Unido en teoria y practica; resultados de un estudio de cinco regiones, Regional Studies. En este articulo examinamos los factores principales que atraen la inversion extranjera directa (IED) en las regiones del Reino Unido usando datos econometricos de cinco muestras de regiones britanicas (Sureste, West Midlands, Noreste, Gales y Escocia) que representan en gran medida la division economica regional del pais. Los resultados indican que los factores regionales y nacionales (sin embargo, no a nivel comunitario), relacionados con varios determinantes estrategicos subyacentes, ayudan a determinar la distribucion regional de la inversion extranjera directa receptiva y sus variaciones interregionales. Para terminar, argumentamos que los politicos del gobierno a nivel nacional y regional pueden tener una funcion importante en cuanto a atraer influjos dirigidos de inversion extranjera directa a las regiones britanicas. Ubicacion de inversion extranjera directa (IED) Regiones britanicas Determinantes estrategicos Motivos especificos Implicaciones para la politica gubernamental

Suggested Citation

  • Grahame Fallon & Mark Cook, 2010. "Exploring the Regional Distribution of Inbound Foreign Direct Investment in the UK in Theory and Practice: Evidence from a Five-Region Study," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 337-353.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:3:p:337-353
    DOI: 10.1080/00343400802378735
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    References listed on IDEAS

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    1. Yuqing Xing & Guanghua Wan, 2004. "Exchange Rates and Competition for FDI," WIDER Working Paper Series RP2004-64, World Institute for Development Economic Research (UNU-WIDER).
    2. Nicholas Phelps & Philip Raines (ed.), 2003. "The New Competition for Inward Investment," Books, Edward Elgar Publishing, number 2500.
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    12. Nasser A. Alkathiri & Mohammad Soliman, 2022. "Examining foreign direct investment determinants of tourism industry in Oman and Egypt: The moderating role of investment environment," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4722-4740, October.
    13. Villaverde, José & Maza, Adolfo, 2015. "The determinants of inward foreign direct investment: Evidence from the European regions," International Business Review, Elsevier, vol. 24(2), pages 209-223.
    14. Grahame Fallon & Mark Cook, 2014. "Explaining Manufacturing and Non-Manufacturing Inbound FDI Location in Five UK Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 331-348, July.
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