Assessing the Regional Impact of Grants on FDI Location: Evidence from U.K. Regional Policy, 1985-2005

  1. Lookup NU author(s)
  2. Professor Colin Wren
  3. Dr Jonathan Jones
Author(s)Wren C, Jones J
Publication type Article
JournalJournal of Regional Science
Year2011
Volume51
Issue3
Pages497-517
ISSN (print)0022-4146
ISSN (electronic)1467-9787
Full text for this publication is not currently held within this repository. Alternative links are provided below where available.
The paper implements a methodology for assessing the regional impact of investment grants on foreign direct investment (FDI) location, taking data for U.K. regional policy over the period 1985–2005. Using a Generalized Methods of Moments estimator it finds that each £25 million of grant changes the regional location of about six inward FDI projects. On average, projects have 150 jobs and each job diverted costs £27,500 (1995 prices). It also finds that the size of the area designated for grants has a positive location effect. The effect is small in relation to the overall scale of FDI, which may explain the weak grant effect found in recent plant-based location studies.
PublisherWiley-Blackwell Publishing, Inc.
URLhttp://dx.doi.org/10.1111/j.1467-9787.2010.00708.x
DOI10.1111/j.1467-9787.2010.00708.x
Actions    Link to this publication