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Export-oriented FDI in the UK

Author

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  • Richard Kneller
  • Mauro Pisu

Abstract

It is well known that the performance of foreign firms compared to domestic companies is superior with respect to employment, wages, and productivity. In this paper we detail the export behaviour of foreign affiliates in the United Kingdom relative to indigenous firms. Our findings show that foreign firms are more likely to export, and when they do so they are more export intensive and overall contribute disproportionately to total manufacturing exports from the UK. While firm-level advantages explain some of these differences in export behaviour, strategic considerations dominate, where these include the differential in costs, productivity, and market size between the UK and foreign countries. That is, both horizontal and vertical motives can be found for the use of the UK as an export platform by foreign firms. Copyright 2004, Oxford University Press.

Suggested Citation

  • Richard Kneller & Mauro Pisu, 2004. "Export-oriented FDI in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 424-439, Autumn.
  • Handle: RePEc:oup:oxford:v:20:y:2004:i:3:p:424-439
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    References listed on IDEAS

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    Cited by:

    1. Sarpong, Daniel Bruce & Wolf, Susanna, 2008. "Export Performance and Investment Behaviour of Firms in Ghana," Proceedings of the German Development Economics Conference, Zurich 2008 46, Verein für Socialpolitik, Research Committee Development Economics.
    2. Shauna Phillips & Fredoun Z. Ahmadi-Esfahani, 2010. "Export market participation, spillovers, and foreign direct investment in Australian food manufacturing," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 329-347.
    3. Emmanuel Dhyne & Selen Sarisoy Guerin, 2014. "Outward foreign direct investment and domestic performance : In search of a causal link," Working Paper Research 272, National Bank of Belgium.
    4. Minjia Chen & Alessandra Guariglia, "undated". "Financial constraints and firm productivity in China: do liquidity and export behavior make a difference?," Discussion Papers 11/09, University of Nottingham, GEP.
    5. DU, Julan & LU, Yi & TAO, Zhigang & YU, Linhui, 2012. "Do domestic and foreign exporters differ in learning by exporting? Evidence from China," China Economic Review, Elsevier, vol. 23(2), pages 296-315.
    6. Baltagi, Badi H. & Egger, Peter H. & Kesina, Michaela, 2017. "Determinants of firm-level domestic sales and exports with spillovers: Evidence from China," Journal of Econometrics, Elsevier, vol. 199(2), pages 184-201.
    7. repec:arp:bmerar:2017:p:57-61 is not listed on IDEAS
    8. Paulo Bastos & Manuel Cabral, 2007. "The Dynamics of International Trade Patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(3), pages 391-415, October.
    9. Greenaway, David & Kneller, Richard, 2008. "Exporting, productivity and agglomeration," European Economic Review, Elsevier, vol. 52(5), pages 919-939, July.
    10. Chudnovsky, Daniel & López, Andrés, 2007. "Foreign direct investment and development: the MERCOSUR experience," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    11. Matthew A. Cole & Robert J. R. Elliott & Supreeya Virakul, 2010. "Firm Heterogeneity, Origin of Ownership and Export Participation," The World Economy, Wiley Blackwell, vol. 33(2), pages 264-291, February.
    12. Lu, Jiangyong & Lu, Yi & Tao, Zhigang, 2010. "Exporting behavior of foreign affiliates: Theory and evidence," Journal of International Economics, Elsevier, vol. 81(2), pages 197-205, July.

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