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Explaining the determinants of manufacturing and non-manufacturing FDI inflows in five UK regions

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  • Mark Cook

Abstract

This paper explores a range of factors that influence the attraction of inbound Foreign Direct Investment (FDI) in the manufacturing and non-manufacturing sectors of five regions in the UK (the South-East, West Midlands, Wales, Scotland and the North-West) by using longitudinal data over the period from 1980 to 2002. Multiple regression analysis is employed in order to identify those factors that exercise a major influence over the attraction of FDI to each region; to highlight significant differences that exist on a region-by-region basis; and to consider the resultant implications for government policy makers. The findings suggest that there may be marked differences in the strategic determinants and specific motives which attract inbound manufacturing and non-manufacturing FDI to various UK regions. Governmental policy makers should therefore tailor their inward investment policies more closely to the key influences that draw in these two types of FDI, in order to maximise future FDI inflows at the UK regional level.

Suggested Citation

  • Mark Cook, 2010. "Explaining the determinants of manufacturing and non-manufacturing FDI inflows in five UK regions," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 4(1), pages 1-26.
    • Handle: RePEc:ids:ijmpra:v:4:y:2010:i:1:p:1-26
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    Cited by:

    1. Villaverde, José & Maza, Adolfo, 2015. "The determinants of inward foreign direct investment: Evidence from the European regions," International Business Review, Elsevier, vol. 24(2), pages 209-223.

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