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Why Do Foreign Firms Invest in South West England?

Author

Listed:
  • Damian N. Whittard

    (South West Regional Development Agency)

  • Don J. Webber

    (School of Economics, University of the West of England)

Abstract

Regional Development Agencies compete to attract foreign direct investments (FDI) that generate economic benefits. This paper seeks to identify factors that attract FDI to the South West region of the UK. The results suggest that the South West’s average wage levels, population density, unemployment rate, physical infrastructure expenditure, growth and the relative dominance of the manufacturing sector all contribute to the multinational enterprise’s decision to locate to the South West. The amount of defence spending is also found to be a determinant, suggesting that the defence sector might be an attractor of FDI. These results are endorsed by a separate survey analysis.

Suggested Citation

  • Damian N. Whittard & Don J. Webber, 2006. "Why Do Foreign Firms Invest in South West England?," Working Papers 0604, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:0604
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    File URL: http://carecon.org.uk/DPs/0604.pdf
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    References listed on IDEAS

    as
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    4. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    FDI; South West;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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