Hymer and uneven development revisited: Foreign Direct Investment and regional inequalities

David Bailey, Nigel Driffield

Research output: Contribution to journalArticlepeer-review

Abstract

Picking up on one of Hymer's key contributions, this paper examines the impact that inward foreign direct investment (FDI) into the UK has on the patterns of development, both within and across regions. Using a panel of data for the manufacturing sector, the paper illustrates that even where one isolates the effect on the domestic sector alone, inward investment acts to increase the demand for skilled, relative to unskilled labour, and also generates the expected agglomeration effects in terms of the demand for capital investment. The paper then goes on to draw certain policy comparisons between these findings and the desired aim of attracting FDI, notably to increase demand for labour in those regions suffering structural unemployment, and secondly to reduce the disparities between regions.
Original languageEnglish
Pages (from-to)55-68
Number of pages14
JournalContributions to Political Economy
Volume21
Issue number1
DOIs
Publication statusPublished - 2002

Bibliographical note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Contributions to Political Economy following peer review. The definitive publisher-authenticated version Bailey, David and Driffield, Nigel L. (2002) Hymer and uneven development revisited: Foreign Direct Investment and regional inequalities. Contributions to Political Economy, 21 . pp. 55-68. ISSN 0277-5921 is available online at: http://cpe.oxfordjournals.org/cgi/content/short/21/1/55

Keywords

  • inward foreign direct investment
  • FDI
  • UK
  • patterns of development
  • manufacturing sector

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