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Inward Investment in the UK regions

In: Bargaining with Multinationals

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  • Henry Bernard Loewendahl

Abstract

In this chapter we follow a similar line of analysis to Chapter 9. First, we conduct an empirical overview of FDI in the UK regions, before examining the role of inward investment in industrial policy at the regional level. We find that while peripheral regions have been most successful in attracting manufacturing FDI projects, the richer regions have a large share of the manufacturing employment provided by foreign companies in the UK. In terms of service sector FDI projects, the South East dominates as an investment location. This has serious implications for peripheral regions because service sector FDI projects are growing much faster than manufacturing projects, and are likely to provide most of the opportunities for attracting FDI and diversifying regional economies away from low cost manufacturing. Furthermore, the most recent data indicates that manufacturing FDI projects are shifting away from low cost to high cost regions, in particular to the Eastern region.

Suggested Citation

  • Henry Bernard Loewendahl, 2001. "Inward Investment in the UK regions," Palgrave Macmillan Books, in: Bargaining with Multinationals, chapter 10, pages 267-294, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59571-2_10
    DOI: 10.1057/9780230595712_10
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