The UK’s Foreign Investment Position post Brexit and COVID: Briefing 2
This briefing is the second in a regular series of notes tracking the changing patterns of inward investment in the UK as we emerge from COVID-19, and as our trading relations with the rest of the world become more certain. This collaboration between Warwick Business School and Moody’s Analytics, funded by The Productivity Institute, explores the latest intelligence on foreign direct investment (FDI) flows into the UK, and what that means for productivity.
Foreign investment continues to play a substantial role in UK economic growth, productivity, and employment, but its effect varies across the regions. Studying the regional distribution of foreign direct investment is crucial for understanding its impacts.
The first briefing explored the aggregate changes in inward FDI in the UK, and the implications for productivity. This second briefing focuses on the regional variations in these trends and illustrate the uneven spatial distributions of investments across the country. It also explores the patterns across industrial activities for the different regions, and in turn explore what this means for productivity.
Authors Nigel Driffield, Xiaocan Yuan, Fernando Gutierrez Barragan