IDEAS home Printed from https://ideas.repec.org/p/cep/sercdp/0035.html
   My bibliography  Save this paper

The Dynamics of FDI Location: A Markov Analysis for British Regions

Author

Listed:
  • Jonathan Jones
  • Colin Wren

Abstract

The paper uses the framework of Markov chains to examine convergence in the location ofinward foreign direct investment across the regions of Great Britain over 1985-2005. Ananalysis is undertaken by industry group that disaggregates manufacturing and services. Itfinds convergence in regional FDI shares, both overall and by industry, which supportsagglomeration. As explanations, a weakening of regional policy has led manufacturing FDI tospread-out from 'north' to 'south', but in services there is a shift in FDI location within the'south' from core to contiguous regions, suggesting diseconomies at the core. The paper findsdifferent spatial processes and draws implications for regional policy.

Suggested Citation

  • Jonathan Jones & Colin Wren, 2009. "The Dynamics of FDI Location: A Markov Analysis for British Regions," SERC Discussion Papers 0035, Spatial Economics Research Centre, LSE.
  • Handle: RePEc:cep:sercdp:0035
    as

    Download full text from publisher

    File URL: http://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0035.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kim, Seong-Hee & Pickton, Todd S. & Gerking, Shelby, 2003. "Foreign Direct Investment: Agglomeration Economies and Returns to Promotion Expenditures," The Review of Regional Studies, Southern Regional Science Association, vol. 33(1), pages 61-72.
    2. Julie Le Gallo, 2004. "Space-Time Analysis of GDP Disparities among European Regions: A Markov Chains Approach," International Regional Science Review, , vol. 27(2), pages 138-163, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Foreign direct investment; location; transition matrices; agglomeration; regional policy;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cep:sercdp:0035. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.