Library Header Image
LSE Research Online LSE Library Services

On the relative importance of agglomeration economies in the location of FDI across British regions

Jones, Jonathan and Wren, Colin (2011) On the relative importance of agglomeration economies in the location of FDI across British regions. SERC Discussion Papers (SERCDP089). Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.

Download (905kB) | Preview


The paper examines the relative importance for industrial location of production linkages and knowledge spillovers, distinguishing between intermediate and non-intermediate goods that are backwards or forwards in nature. A novel approach is used to construct proxies for non-intermediate goods at a sub-national industry level based on an Input-Output transaction table. Taking data on location decisions by foreign-owned plants across British regions over 1985-2007, the paper finds support for the new economic geography explanation of location based on linkages over that due to spillovers. However, the importance of intermediate and non-intermediate linkages differs between manufacturing and service industries.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2011 The Authors
Divisions: Spatial Economics Research Centre
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior
O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location
Date Deposited: 30 Jul 2014 15:52
Last Modified: 15 Sep 2023 23:25
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics