Foreign and domestic investment: regional development or crowding out?

Nigel Driffield, Dylan Hughes

Research output: Contribution to journalArticle

Abstract

This paper tests, at the regional and industry level, the extent to which domestic investment is stimulated or crowded out by inward foreign direct investment. The paper develops a model of domestic investment, based on standard models drawn from macroeconomics and industrial economics. The paper then goes on to show that, at a general level, the 'development' or agglomeration hypothesis is confirmed that domestic investment is indeed stimulated by inward investment. However, there is also evidence that, in certain regions, inward investment has crowded out domestic investment. The implications of this from the perspective of regional policy are briefly discussed.
Original languageEnglish
Pages (from-to)277-288
Number of pages12
JournalRegional studies
Volume37
Issue number3
DOIs
Publication statusPublished - May 2003

Fingerprint

crowding out
regional development
regional policy
foreign direct investment
macroeconomics
direct investment
agglomeration
foreign investment
agglomeration area
industry
evidence
economics

Bibliographical note

This is an Author's Accepted Manuscript of an article published in Driffield, N., & Hughes, D. (2003). Foreign and domestic investment: regional development or crowding out?. Regional studies, 37(3), 277-288. Regional studies 2003 © Regional Studies Association, Taylor & Francis, available online at:http://www.tandfonline.com/10.1080/0034340032000065433

Keywords

  • inward investment
  • domestic investment
  • crowding out

Cite this

Driffield, Nigel ; Hughes, Dylan. / Foreign and domestic investment : regional development or crowding out?. In: Regional studies. 2003 ; Vol. 37, No. 3. pp. 277-288.
@article{5ff87ecec0544720a064b8e2312a7c9a,
title = "Foreign and domestic investment: regional development or crowding out?",
abstract = "This paper tests, at the regional and industry level, the extent to which domestic investment is stimulated or crowded out by inward foreign direct investment. The paper develops a model of domestic investment, based on standard models drawn from macroeconomics and industrial economics. The paper then goes on to show that, at a general level, the 'development' or agglomeration hypothesis is confirmed that domestic investment is indeed stimulated by inward investment. However, there is also evidence that, in certain regions, inward investment has crowded out domestic investment. The implications of this from the perspective of regional policy are briefly discussed.",
keywords = "inward investment, domestic investment, crowding out",
author = "Nigel Driffield and Dylan Hughes",
note = "This is an Author's Accepted Manuscript of an article published in Driffield, N., & Hughes, D. (2003). Foreign and domestic investment: regional development or crowding out?. Regional studies, 37(3), 277-288. Regional studies 2003 {\circledC} Regional Studies Association, Taylor & Francis, available online at:http://www.tandfonline.com/10.1080/0034340032000065433",
year = "2003",
month = "5",
doi = "10.1080/0034340032000065433",
language = "English",
volume = "37",
pages = "277--288",
journal = "Regional studies",
issn = "0034-3404",
publisher = "Routledge",
number = "3",

}

Foreign and domestic investment : regional development or crowding out? / Driffield, Nigel; Hughes, Dylan.

In: Regional studies, Vol. 37, No. 3, 05.2003, p. 277-288.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Foreign and domestic investment

T2 - regional development or crowding out?

AU - Driffield, Nigel

AU - Hughes, Dylan

N1 - This is an Author's Accepted Manuscript of an article published in Driffield, N., & Hughes, D. (2003). Foreign and domestic investment: regional development or crowding out?. Regional studies, 37(3), 277-288. Regional studies 2003 © Regional Studies Association, Taylor & Francis, available online at:http://www.tandfonline.com/10.1080/0034340032000065433

PY - 2003/5

Y1 - 2003/5

N2 - This paper tests, at the regional and industry level, the extent to which domestic investment is stimulated or crowded out by inward foreign direct investment. The paper develops a model of domestic investment, based on standard models drawn from macroeconomics and industrial economics. The paper then goes on to show that, at a general level, the 'development' or agglomeration hypothesis is confirmed that domestic investment is indeed stimulated by inward investment. However, there is also evidence that, in certain regions, inward investment has crowded out domestic investment. The implications of this from the perspective of regional policy are briefly discussed.

AB - This paper tests, at the regional and industry level, the extent to which domestic investment is stimulated or crowded out by inward foreign direct investment. The paper develops a model of domestic investment, based on standard models drawn from macroeconomics and industrial economics. The paper then goes on to show that, at a general level, the 'development' or agglomeration hypothesis is confirmed that domestic investment is indeed stimulated by inward investment. However, there is also evidence that, in certain regions, inward investment has crowded out domestic investment. The implications of this from the perspective of regional policy are briefly discussed.

KW - inward investment

KW - domestic investment

KW - crowding out

UR - http://www.scopus.com/inward/record.url?scp=0037995465&partnerID=8YFLogxK

UR - http://www.tandfonline.com/10.1080/0034340032000065433

U2 - 10.1080/0034340032000065433

DO - 10.1080/0034340032000065433

M3 - Article

VL - 37

SP - 277

EP - 288

JO - Regional studies

JF - Regional studies

SN - 0034-3404

IS - 3

ER -