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The German-Owned Manufacturing Sector in the North-East of England

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  • Peter Kirchner

Abstract

The north-east of England is one of the most successful regions in attracting foreign investment in the UK-Germany being the most important European investor. This article seeks to provide a detailed account of the underlying motives and linkage effects of German direct investment in the manufacturing sector in the north-east of England. The study of 19 of the 29 German-owned manufacturing companies found that market-orientation was by far the most important pull-factor. The direct effects in terms of associated jobs and capital spending created a solid and persistent structure with six companies even expanding. However, to be more beneficial to the restructuring of the regional economy the existing linkages of the German-owned manufacturing sector have to be consolidated and additional networks built up. A separate discussion of the rise and fall of the Siemens semiconductor plant at Wallsend reveals the volatility of flagship investments and stresses the need for a regional industrial policy combining Foreign Direct Investment (FDI) with endogenous economic development.

Suggested Citation

  • Peter Kirchner, 2000. "The German-Owned Manufacturing Sector in the North-East of England," European Planning Studies, Taylor & Francis Journals, vol. 8(5), pages 601-617, October.
    • Handle: RePEc:taf:eurpls:v:8:y:2000:i:5:p:601-617
    DOI: 10.1080/713666426
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    Cited by:

    1. Stefan Lutz & Oleksandr Talavera & Sang-Min Park, 2008. "Effects of Foreign Presence in a Transition Economy: Regional and Industrywide Investments and Firm-Level Exports in Ukrainian Manufacturing," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 44(5), pages 82-98, September.
    2. Lutz, Stefan H. & Talavera, Oleksandr & Park, Sang-Min, 2003. "The effects of regional and industry-wide FDI spillovers on export of Ukrainian firms," ZEI Working Papers B 18-2003, University of Bonn, ZEI - Center for European Integration Studies.
    3. Harald Bathelt, 2013. "Post-Reunification Restructuring and Corporate Re-bundling in the Bitterfeld-Wolfen Chemical Industry, East Germany," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(4), pages 1456-1485, July.

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