Inward foreign direct investment and employment: a project-based analysis in north-east England

Jonathan Jones and Colin Wren

Journal of Economic Geography, 2004, vol. 4, issue 5, 517-543

Abstract: The paper examines the pattern of jobs in projects implemented by foreign-owned plants in the north east of England over the period 1985--1998. It analyses the characteristics of projects generating a greater or smaller number of jobs. The paper finds a substantial concentration of investment in a relatively small number of projects, but that the jobs are much less so. At the project level, the characteristics that are important for determining the number of jobs are the project activity and type (i.e. start-up, acquisition, joint venture or re-investment), but other factors have no influence. However, in aggregate, the paper finds that there is a substantial concentration of jobs by the country of origin, the location and by the manufacturing activity. It also finds that the national inward investment agencies tend to concentrate their efforts on certain kinds of project. It concludes by questioning the optimality of this concentration of inward investment for regional development and employment. Copyright 2004, Oxford University Press.

Date: 2004
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