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Why Do Foreign Firms Invest in South West England?

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  • Damian N. Whittard

    (South West Regional Development Agency)

  • Don J. Webber

    ()
    (School of Economics, University of the West of England)

Abstract

Regional Development Agencies compete to attract foreign direct investments (FDI) that generate economic benefits. This paper seeks to identify factors that attract FDI to the South West region of the UK. The results suggest that the South West’s average wage levels, population density, unemployment rate, physical infrastructure expenditure, growth and the relative dominance of the manufacturing sector all contribute to the multinational enterprise’s decision to locate to the South West. The amount of defence spending is also found to be a determinant, suggesting that the defence sector might be an attractor of FDI. These results are endorsed by a separate survey analysis.

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File URL: http://carecon.org.uk/DPs/0604.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 0604.

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Length: 24 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:uwe:wpaper:0604

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Keywords: FDI; South West;

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  1. Barrell, Ray & Pain, Nigel, 1999. "Trade restraints and Japanese direct investment flows," European Economic Review, Elsevier, vol. 43(1), pages 29-45, January.
  2. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-95, November.
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