LOCATIONAL ADVANTAGE AND US FOREIGN DIRECT-INVESTMENT IN UK MANUFACTURING

Authors
MILNER C PENTECOST E
Citation
C. Milner et E. Pentecost, LOCATIONAL ADVANTAGE AND US FOREIGN DIRECT-INVESTMENT IN UK MANUFACTURING, Applied economics, 28(5), 1996, pp. 605-615
Citations number
21
Categorie Soggetti
Economics
Journal title
Applied economics → ACNP
ISSN journal
00036846
Volume
28
Issue
5
Year of publication
1996
Pages
605 - 615
Database
ISI
SICI code
0003-6846(1996)28:5<605:LAAUFD>2.0.ZU;2-I
Abstract
The relationship between foreign direct investment (FDI) and internati onal trade is examined with specific reference to US FDI in the UK. Fo ur complementary hypotheses are tested on a cross-section of UK indust ries. There is evidence of US FDI being located in UK industries which have a revealed comparative advantage and that large market size effe cts are important. On the other hand, little evidence was found for th e protection jumping and industrial concentration hypotheses.