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Do Inward Investors Achieve their Job Targets?

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  • Jonathan Jones
  • Colin Wren
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    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. Copyright 2004 Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

    Volume (Year): 66 (2004)
    Issue (Month): 4 (09)
    Pages: 483-513

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    Handle: RePEc:bla:obuest:v:66:y:2004:i:4:p:483-513

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    Cited by:
    1. Jonathan Jones & Colin Wren, 2008. "Foreign direct investment and prospects for the northern region," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33137, 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, Spatial Economics Research Centre, LSE 0013, Spatial Economics Research Centre, LSE.
    3. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0003, Spatial Economics Research Centre, LSE.
    4. Jonathan Jones & Colin Wren, 2008. "FDI location across British regions and inward investment policy," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33204, London School of Economics and Political Science, LSE Library.
    5. Jonathan Jones & Colin Wren, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33138, London School of Economics and Political Science, LSE Library.
    6. Wren, Colin & Jones, Jonathan, 2009. "Re-investment and the survival of foreign-owned plants," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 39(2), pages 214-223, March.
    7. 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.
    8. Jonathan Jones & Colin Wren, 2008. "Foreign Direct Investment and Prospects for the Northern Region," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0004, Spatial Economics Research Centre, LSE.

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