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


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.

Publication DOI: https://doi.org/10.1093/cpe/21.1.55
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: 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
Uncontrolled Keywords: inward foreign direct investment,FDI,UK,patterns of development,manufacturing sector
Publication ISSN: 1464-3588
Last Modified: 05 Mar 2024 08:08
Date Deposited: 05 Oct 2009 12:31
Full Text Link:
Related URLs: http://cpe.oxfo ... t/short/21/1/55 (Publisher URL)
PURE Output Type: Article
Published Date: 2002
Authors: Bailey, David
Driffield, Nigel (ORCID Profile 0000-0003-1056-3117)



Version: Draft Version

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