The 'boom' in foreign direct investment (FDI) since the mid-1980s, continues to be paramount in policy interest. This book reviews the literature on the nature of FDI and reports the recent results on the performance of FDI plants in order to show the implications for regional economic development. It presents new evidence on the nature and performance of these plants, using a unique dataset that has been constructed and rigorously analyzed by applying econometric techniques. The role of FDI in economic development has long been poorly understood and this book contributes to improving understanding, and is of direct policy relevance. An examination is made of the generation, theory and location of FDI, as well as its implications for regional and national development. In addition to this, analysis is made of the issues at the project and plant levels, related to investment, employment and firm survival.
Colin Wren is Professor of Applied Microeconomics at the University of Newcastle upon Tyne Business School, UK. He has long-standing research interests in economic development policies, and understanding the processes by which these impact upon the behaviour of firms. Dr Jonathan Jones is Lecturer in Economics at the University of Newcastle upon Tyne Business School, UK. He has recently completed his PhD in the area of foreign direct investment. His research interests lie in the areas of industrial economics and applied econometrics.
'This excellent new book investigates the impact of FDI on regional development. It is the product of several years of careful and painstaking research and sets high standards for future work in this area. Academics and policy-analysts will benefit greatly from the lessons in policy evaluation techniques provided by this important addition to the literature.' Jim Taylor, Lancaster University, UK 'Attracting inward investment has been a major policy tool in the UK and elsewhere, and yet alarmingly little is known about the effects of such investment on the regional economy. This volume presents a coherent framework for such analysis, particularly in the context of the conflicting interests of politicians, practitioners and the firms themselves...an interesting and valuable contribution to an important debate.' Professor Nigel Driffield, Aston University, UK 'This book is a worthwhile read for anyone interested in the economic role of FDI...Throughout the book a systematic, logical and objective approach is followed. The authors build on conventional classical theory and add value to the global debate on the impact of FDI on an economy.' South African Journal of Economics '...the authors demonstrate an impressive array of tools, such as tables, graphs, maps statistical tests, regressions with alternative specifications, sensitivity analysis, the generation of hazards, on the basis of which one is tempted to recommend it as an example of how regional economic research ought to be conducted, not only in the UK but around the world'. South-Eastern Europe Journal of Economics '...interesting reading for anyone interested in the economic role of FDI. The authors start with a basic analysis of FDI, but carry out a complex and thorough analysis of its implications in terms of job creation...[this book] provides useful insights with which readers can draw their own important lessons from the case study.' Italian Journal of Regional Science