Author： Kirchner Peter
Publisher： Routledge Ltd
ISSN： 1469-5944
Source： European Planning Studies, Vol.8, Iss.5, 2000-10, pp. : 601-617
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
The north-east of England is one of the most successful regions in attracting foreign investment in the UK-Germany being the most important European investor. This article seeks to provide a detailed account of the underlying motives and linkage effects of German direct investment in the manufacturing sector in the north-east of England. The study of 19 of the 29 German-owned manufacturing companies found that market-orientation was by far the most important pull-factor. The direct effects in terms of associated jobs and capital spending created a solid and persistent structure with six companies even expanding. However, to be more beneficial to the restructuring of the regional economy the existing linkages of the German-owned manufacturing sector have to be consolidated and additional networks built up. A separate discussion of the rise and fall of the Siemens semiconductor plant at Wallsend reveals the volatility of flagship investments and stresses the need for a regional industrial policy combining Foreign Direct Investment (FDI) with endogenous economic development.
Related content
Access to resources
Recommend
By PHELPS N. A. MACKINNON DANNY STONE IAN BRAIDFORD PAUL
Regional Studies: The Journal of the Regional Studies Association, Vol. 37, Iss. 1, 2003-01 ,pp. :
By Hu Fox Z. Y. Lin George C. S.
Regional Studies: The Journal of the Regional Studies Association, Vol. 47, Iss. 4, 2013-04 ,pp. :