ABSTRACT
This chapter examines the factors that determine the location of foreign direct investment (FDI) projects in UK regions. It seeks to throw light on these issues by employing a dataset on inward FDI, disaggregated to the level of both the individual firm and region, and also disaggregated by manufacturing and service FDI. The chapter aims to improve on the situation by providing evidence on the links between FDI location behaviour and the characteristics of regions across all types of industries. It outlines the patterns of inward FDI in UK regions and demonstrates that there has been a relative shift in favour of London and the southern and eastern regions of the UK. The chapter discusses insights from location theory and the most appropriate approach, wherever possible, is to analyse the characteristics of both the firm and the region within the same analytical and empirical framework. It also discusses the dataset and methodology employed and presents the results of the analyses.
