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Choice of Location and the Roles of Foreign Subsidiaries: Evidence from UK Regions

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Author Info
Constantina Kottaridi (Athens University of Economics and Business)
Fragkiskos Filippaios
Marina Papanastassiou
Robert Pearce (Department of Economics, Reading University Business School)

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Abstract

In this paper we investigate the location determinants of inward foreign direct investment (FDI) in the UK at a regional level. The paper focuses on a relatively under investigated field, that of the linkage between choice of regional location- within a particular host countryand subsidiary roles. The key contribution steaming from this analysis is that we provide, for the first time, detailed support of the location factors affecting distinctive types of subsidiaries. The external environment affects differently the two types of subsidiaries under investigation with agglomeration features playing the most significant role. At the same time idiosyncratic FDI factors do seem to play the most important role for both types of subsidiaries. Important policy implications are then raised, regarding the design of welltargeted FDI promoting policies aiming both at upgrading regional potential as well as specific sectors and companies.

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Publisher Info
Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2004-04.

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Length: 35 pages
Date of creation: Feb 2004
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Handle: RePEc:rdg:emxxdp:em-dp2004-04

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Related research
Keywords: UK Regions; subsidiaries; agglomeration; location choice;

References listed on IDEAS
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.:

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  18. Devereux, Michael P. & Griffith, Rachel, 1998. "Taxes and the location of production: evidence from a panel of US multinationals," Journal of Public Economics, Elsevier, vol. 68(3), pages 335-367, June. [Downloadable!] (restricted)
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  19. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
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  21. Markusen, James R. & Venables, Anthony J., 1998. "Multinational firms and the new trade theory," Journal of International Economics, Elsevier, vol. 46(2), pages 183-203, December. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Constantina Kottaridi & Fragkiskos Filippaios, 2007. "Mapping Foreign direct Investment in UK Regions: The Role of Environmental Determinism and Dynamism," Working Papers 010, University of Peloponnese, Department of Economics. [Downloadable!]
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