Document Abstract

A review of the economic evidence on the determinants and effects of foreign direct investment

Explores the determinants and impacts of foreign direct investment (FDI) and the effectiveness of FDI-related policy interventions. Identifies key themes in the theoretical literature on FDI and examines the research evidence on the determinants of FDI inflows and outflows. Looks at trends in global FDI, especially recent patterns of growth and spatial and sectoral distribution. Analyses data on UK FDI. Reviews the existing research on the impacts of FDI on the host country, looking at productivity spillovers, competition, trade, value chain effects, employment, labour market effects, industrial relations, and human resources or operational management effects. Examines the impact and cost-effectiveness of public incentives and assistance for FDI, as well as the effects of different types of intervention at different spatial levels. Highlights the implications of the research findings for Wales.


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Munday, Max et al; Cardiff University, Cardiff Business School
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Welsh Economy Research Unit

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