Research Report

Spillovers from inward investment – a comparison of Northern Ireland with the rest of the UK.

ERC Research Report 2020


ERC,, Driffield, Nigel, Lavoratori, Katiuscia

Associated Themes
  • Productivity and performance

The purpose of this exercise is to explore the variation in spillovers from inward investment in different parts of the UK. We seek therefore to quantify (and briefly discuss) the average effect for the UK, and subsequently explore differences in this apparent value across locations.
In order to put our analysis in context it is necessary to understand what we mean by spillovers, and how they have come to be interpreted.
Section 1 provides a framework by which one can quantify and subsequently explore the nature of apparent spillovers from Foreign Direct Investment (FDI) between regions. The purpose of this analysis is to report some results concerning the variation in the productivity effects of FDI across UK regions, but also to offer some thoughts as to why this is the case.