The determinants of services FDI location in the UK regions

Abstract

This paper contributes to scholarly knowledge and understanding of the way in which economic conditions and government policy affect foreign direct investment (FDI) location in the United Kingdom (UK) regions. It does so by exploring their impact on inbound services FDI location in a sample of one of the UK's core (South East England) and four non-core (West Midlands; Wales; Scotland and the North West) regions. Use is made of multiple regression techniques to analyse a set of official, longitudinal data gathered for the period from 1980 to 2015 as a means to this end. The findings offer new insights into the relative influence of the search for markets, efficiencies and strategic assets and government policy over the location of services FDI in all five regions. The resultant implications for future inward investment policy development after the UK leaves the EU are also considered, including the potential benefits of increasing policy variations from region to region.

The Urgency of Foreign Direct Investment in Micro, Small, and Medium Enterprises Financing Framework: The Case of Indonesia

“…In 2019, FDI was finally made to relieve the constraints (Meijer et al, 2019) and the sectors became profitable for investors, either because of the successful technology transfer (Hennart, 1989) or the creation of value (Prahalad & Hamel, 1990). MSMEs that have developed can also encourage FDI flows, particularly efficiency-seeking FDI because the presence of a strong regional MSMEs sector is one of the selection factors for investors in determining the location of FDI (Cook & Fallon, 2020). This is because investors are trying to learn and gain access to strategic assets.…”