Do Inward Investors Achieve their Job Targets?

Jonathan Jones and Colin Wren

Oxford Bulletin of Economics and Statistics, 2004, vol. 66, issue 4, 483-513

Abstract: The paper utilizes data for north‐east England over the period 1985–98 to examine if foreign‐owned start‐up plants achieve their job targets. Different models are estimated, each shedding light on the relationship between the jobs promised by plants in their initial investment and their actual employment attained. On average, it is found that the plants achieve their job targets, but larger plants fall someway short. It is argued that these plants may deliberately overstate the number of jobs, and that the employment‐creation claims of inward investors and economic development agencies should be treated with skepticism.

Date: 2004
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https://doi.org/10.1111/j.1468-0084.2004.00090.x

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