Inward investment, transaction linkages and productivity spillovers


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.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
Additional Information: The definitive version is available at
Uncontrolled Keywords: foreign manufacturing,input-output tables,productivity spillovers,spatial dependence,Environmental Science (miscellaneous),Geography, Planning and Development
Publication ISSN: 1435-5957
Last Modified: 24 Apr 2024 07:07
Date Deposited: 13 Oct 2009 20:13
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL) ... 799381/abstract (Publisher URL)
PURE Output Type: Article
Published Date: 2004-10
Authors: Driffield, Nigel L. (ORCID Profile 0000-0003-1056-3117)
Munday, Max
Roberts, Annette



Version: Accepted Version

Export / Share Citation


Additional statistics for this record