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Foreign Manufacturing, Regional Agglomeration and Technical Efficiency in UK Industries: A Stochastic Production Frontier Approach

  • Nigel Driffield
  • Max Munday

The paper examines howfar foreign manufacturing investment in UK industries, together with the spatial agglomeration of those industries, affect technical efficiency. The paper links research on the estimation of technical efficiency,with those literatures demonstrating the economies associated with foreign direct investment and spatial agglomeration. The methodology involves estimation of a stochastic production frontier with random components associated with industry technical inefficiency, and a standard error. The paper also explores whether the degree of foreign involvement has a greater impact on technical efficiency where the domestic industry sector is characterized by comparatively high productivity and spatial agglomeration. The policy implications of the analysis are discussed. Cet article cherche a examiner jusqu'a quel point l'investissement industriel au Royaume-Uni, conjointement avec l'agglomeration geographique des industries en question, a une incidence sur l'efficacite technique. L'article relie la recherche sur l'estimation de l'efficacite technique a la documentation qui demontrent les economies dues a l'investissement direct etranger et a l'agglomeration geographique. La methodologie necessite une estimation de la frontiere de la production stochastique, avec des composantes aleatoires associees au manque d'organisation industrielle technique, et une erreur-type. L'article cherche aussiaexaminer si, oui ou non, le taux d'investissement etranger a plus d'incidence sur l'efficacite technique la ou l'industrie nationale se caracterise par une productivite et une agglomeration geographique relativement elevees. Les retombees de cette analyse pour la politique se voient discuter. Dieser Aufsatz untersucht, wie Investierungen auslandischer Hersteller in der Industrie des Vereinigten Konigreichs sich bei gleichzeitiger raumlicher Ballung dieser Industrien auf technische Leistung auswirken. Der Aufsatz verbindet Untersuchungen der Schatzung technischer Leistung mit Veroffentlichungen, welche sich mit der Darstellung von Wirtschaften beschaftigen, die mit Direktinvestierungen des Auslands und raumlicher Ballung in Verbindung gebracht werden. Bei dieser Methodik werden Schatzungen der stochastischen Herstellungsgrenze mit Zufallskomponenten einbezogen, die mit technischer Inkompetenz der Industrie in Verbindung gebracht werden, sowie einem Standardfehler. Daruberhinaus untersucht der Aufsatz auch, ob das Ausmass auslandischer Mitarbeit sich starker auf technische Leistung auswirkt wo der einheimische Industriesektor sich durch verhaltnismassig hohe Leistung und raumliche Ballung auszeichnet. Es werden Implikationen der Analyse fur Zielsetzungen diskutiert.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 35 (2001)
Issue (Month): 5 ()
Pages: 391-399

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Handle: RePEc:taf:regstd:v:35:y:2001:i:5:p:391-399
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