Local productivity spillovers from foreign direct investment in the U.K. electronics industry

The paper examines whether productivity spillovers from foreign direct investment are geographically limited. Using plant-level data from the U.K. electronics sector, it finds robust evidence of both intra-industry and inter-industry spillovers from regional FDI. By contrast, it fails to establish any discernible relationship between domestic plant's productivity and FDI outside the region.