Inward investment, transaction linkages and productivity spillovers

Nigel L. Driffield, Max Munday, Annette Roberts

Research output: Contribution to journalArticlepeer-review


The article examines the extent to which foreign manufacturing firms in the UK promote productivity growth in the domestically owned manufacturing sector through their buying and supplying relationships. Evidence for intra- and inter-regional externalities from the presence of foreign manufacturing, and intraand inter-industry effects is brought to light. Externalities in the domestic sector are most noticeable where foreign manufacturing sells to domestic manufacturing. These externalities are, however, not wholly robust to different specifications of spatial dependence. The findings are positioned in a debate, which has tended to view backward (as opposed to forward) linkages from multinationals to domestically owned supply bases as a critical driver of indirect economic benefits. © RSAI 2004.

Original languageEnglish
Pages (from-to)699-722
Number of pages24
JournalPapers in Regional Science
Issue number4
Publication statusPublished - Oct 2004

Bibliographical note

The definitive version is available at


  • foreign manufacturing
  • input-output tables
  • productivity spillovers
  • spatial dependence


Dive into the research topics of 'Inward investment, transaction linkages and productivity spillovers'. Together they form a unique fingerprint.

Cite this