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A regional CGE analysis of the demand and 'efficiency spillover' effects of foreign direct investment

Gillespie, G. and McGregor, P.G. and Swales, J.K. and Yin, Y. (2001) A regional CGE analysis of the demand and 'efficiency spillover' effects of foreign direct investment. In: Inward Investment, Technological Change and Growth: The Impact of Multinational Corporations on the UK Economy. Palgrave, pp. 178-209. ISBN 033392536X

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Abstract

Most industrialised economies rely increasingly on knowledge-based activities. The processes of globalisation and European integration have simultaneously encouraged the growth of foreign direct investment, with multinational companies helping to transmit firm-specific technologies and ideas across national borders. Governments and local development agencies are engaged in fierce competition to attract inward investment in the belief that such investments offer wider benefits for host locations. This chapter presents a regional CGE analysis of the demand and 'efficiency spillover' effects of foreign direct investment.