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

Jonathan Jones and Colin Wren

SERC Discussion Papers from Centre for Economic Performance, LSE

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.

Keywords: Foreign direct investment; location; transition matrices; agglomeration; regional policy (search for similar items in EconPapers)
JEL-codes: L20 O12 R58 (search for similar items in EconPapers)
Date: 2009-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://cep.lse.ac.uk/pubs/download/sercdp0035.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0035

Access Statistics for this paper

More papers in SERC Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().