Industrial performance, agglomeration, and foreign manufacturing investment in the UK

Nigel Driffield, Max Munday

Research output: Contribution to journalArticlepeer-review


This paper examines the relationship between the comparative advantage of UK industries, and new inward investment into these industries. The paper demonstrates that the extent of foreign manufacturing investment in an industry, and the spatial agglomeration of that industry, are significant determinants of industry comparative advantage, thus providing evidence of agglomeration benefits to both domestic and foreign firms. The paper then shows that industry comparative advantage itself, toegther with a series of industry specific characteristics, are important determinants of new foreigh manufacturing investment, thus providing evidence of the dynamic benefits of foreign direct investment in the UK economy.
Original languageEnglish
Pages (from-to)21-37
Number of pages17
JournalJournal of International Business Studies
Issue number1
Publication statusPublished - 2000


  • comparative advantage
  • UK industries
  • inward investment
  • foreign manufacturing investment
  • spatial agglomeration
  • industry comparative advantage


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