The presumed higher productivity of foreign firms and resulting spillovers to domestic firms has led governments to offer financial incentives to foreign firms. We investigate if there is any productivity or wage gap between foreign and domestic firms in the UK and if the presence of foreign...

This paper constructs a theoretical model of the factors influencing both the location and the method of production chosen by multinational enterprises and examines the extent to which it can be used to explain aggregate foreign direct investment in the United Kingdom over the last two decades....

This paper investigates the impact of direct investment by foreign-owned companies on technical progress and hence labour productivity in the UK manufacturing sector. Using an industry-level panel data set we find that foreign-owned firms have a significant positive effect on the level of...