Foreign manufacturing, regional agglomeration and technical efficiency in UK industries: a stochastic production frontier approach

Nigel Driffield, Max Munday

Research output: Contribution to journalArticle

Abstract

The paper examines howfar foreign manufacturing investment in UK industries, together with the spatial agglomeration of those industries, affect technical efficiency. The paper links research on the estimation of technical efficiency,with those literatures demonstrating the economies associated with foreign direct investment and spatial agglomeration. The methodology involves estimation of a stochastic production frontier with random components associated with industry technical inefficiency, and a standard error. The paper also explores whether the degree of foreign involvement has a greater impact on technical efficiency where the domestic industry sector is characterized by comparatively high productivity and spatial agglomeration. The policy implications of the analysis are discussed.
Original languageEnglish
Pages (from-to)391-399
Number of pages9
JournalRegional studies
Volume35
Issue number5
DOIs
Publication statusPublished - Jul 2001

Keywords

  • foreign manufacturing
  • regional industry agglomeration
  • industry efficiency

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