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

Lookup NU author(s): Dr Jonathan JonesORCiD, Professor Colin Wren

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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. © Oxford University Preass 2004; all rights reserved.

Publication metadata

Author(s): Jones J, Wren C

Publication type: Article

Publication status: Published

Journal: Journal of Economic Geography

Year: 2004

Volume: 4

Issue: 5

Pages: 517-543

ISSN (print): 1468-2702

ISSN (electronic): 1468-2710

Publisher: Oxford University Press

URL: http://dx.doi.org/10.1093/jnlecg/lbh020

DOI: 10.1093/jnlecg/lbh020

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