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Does Service FDI Locate Differently to Manufacturing FDI? A Regional Analysis for Great Britain

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  • Jonathan Jones
  • Colin Wren

Abstract

Jones J. and Wren C. Does service FDI locate differently to manufacturing FDI? A regional analysis for Great Britain, Regional Studies. This paper analyses the location of foreign direct investment (FDI) in services at the NUTS-2 region level for Great Britain over 1996–2005, covering the period of growth in FDI. It finds strong differences in service FDI location compared with manufacturing FDI. Unlike manufacturing, service FDI location is determined at no higher than the NUTS-2 region level, while it is more dynamic and converging to the larger markets. A similar pattern is found for the services that are most forward-linked to manufacturing industries. The paper concludes that access to final consumer demand is important for service FDI, with implications for UK regional policy.

Suggested Citation

  • Jonathan Jones & Colin Wren, 2016. "Does Service FDI Locate Differently to Manufacturing FDI? A Regional Analysis for Great Britain," Regional Studies, Taylor & Francis Journals, vol. 50(12), pages 1980-1994, December.
  • Handle: RePEc:taf:regstd:v:50:y:2016:i:12:p:1980-1994
    DOI: 10.1080/00343404.2015.1009434
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    References listed on IDEAS

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    1. Eckhardt Bode & Peter Nunnenkamp, 2011. "Does foreign direct investment promote regional development in developed countries? A Markov chain approach for US states," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 351-383, June.
    2. Krenz, Astrid, 2010. "Services sectors' agglomeration and its interdependence with industrial agglomeration in the European Union," University of Göttingen Working Papers in Economics 107, University of Goettingen, Department of Economics.
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    Cited by:

    1. Huang, Youxing & Yang, Yu, 2023. "Determinants of Chinese energy OFDI location decisions and entry failure risk: The roles of public diplomacy endeavors and firm investment strategies," Energy, Elsevier, vol. 267(C).
    2. Klimek Artur, 2018. "Agglomeration Economies and Foreign Direct Investment in Advanced Business Services in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(1), pages 69-79, March.
    3. Vendrell-Herrero, Ferran & Gomes, Emanuel & Bustinza, Oscar F. & Mellahi, Kamel, 2018. "Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs," International Business Review, Elsevier, vol. 27(4), pages 814-825.
    4. Marie-Line Duboz & Nathalie Kroichvili & Julie Le Gallo, 2019. "What matters most for FDI attraction in services: country or region performance? An empirical analysis of EU for 1997–2012," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 601-638, December.
    5. Felipe J. Fonseca & Irving Llamosas-Rosas, 2019. "Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 265-284, April.
    6. Veronika Hecht, 2017. "Location choice of German multinationals in the Czech Republic," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(4), pages 593-623, October.
    7. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.

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