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ASSESSING THE REGIONAL IMPACT OF GRANTS ON FDI LOCATION: EVIDENCE FROM U.K. REGIONAL POLICY, 1985-2005.
- Source :
- Journal of Regional Science; Aug2011, Vol. 51 Issue 3, p497-517, 21p, 5 Charts, 2 Graphs
- Publication Year :
- 2011
-
Abstract
- ABSTRACT The paper implements a methodology for assessing the regional impact of investment grants on foreign direct investment (FDI) location, taking data for U.K. regional policy over the period 1985-2005. Using a Generalized Methods of Moments estimator it finds that each £25 million of grant changes the regional location of about six inward FDI projects. On average, projects have 150 jobs and each job diverted costs £27,500 (1995 prices). It also finds that the size of the area designated for grants has a positive location effect. The effect is small in relation to the overall scale of FDI, which may explain the weak grant effect found in recent plant-based location studies. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00224146
- Volume :
- 51
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Journal of Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 63249663
- Full Text :
- https://doi.org/10.1111/j.1467-9787.2010.00708.x