The Dynamics of FDI Location: A Markov Analysis for British Regions
AbstractThe paper uses the framework of Markov chains to examine convergence in the location ofinward foreign direct investment across the regions of Great Britain over 1985-2005. Ananalysis is undertaken by industry group that disaggregates manufacturing and services. Itfinds convergence in regional FDI shares, both overall and by industry, which supportsagglomeration. As explanations, a weakening of regional policy has led manufacturing FDI tospread-out from 'north' to 'south', but in services there is a shift in FDI location within the'south' from core to contiguous regions, suggesting diseconomies at the core. The paper findsdifferent spatial processes and draws implications for regional policy.
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Bibliographic InfoPaper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0035.
Date of creation: Nov 2009
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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp
Foreign direct investment; location; transition matrices; agglomeration; regional policy;
Find related papers by JEL classification:
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- LE GALLO, Julie, 2001. "Space-time analysis of GDP disparities among European regions: A Markov chains approach," LATEC - Document de travail - Economie (1991-2003) 2001-06, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
- Kim, Seong-Hee & Pickton, Todd S. & Gerking, Shelby, 2003. "Foreign Direct Investment: Agglomeration Economies and Returns to Promotion Expenditures," The Review of Regional Studies, Southern Regional Science Association, vol. 33(1), pages 61-72.
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