Bargaining with Multinationals
The Investment of Siemens and Nissan in North-East England

Examines the relationship between multinational companies, regional development and governments. It critically analyzes the role of foreign investment in economic development, and examines how governments can link inward investment to regional economic development.

Loewendahl finds that while the UK has been highly successful in attracting inward investment, the lack of an industrial strategy to link FDI with indigenous competitiveness has limited the long term contribution of FDI to economic development. Regions within the UK have lacked the institutional capability to develop alternatives to attracting FDI. Through a case study of North East England, Loewendahl reveals the growing importance of after-care policies in embedding MNCs and the re-focus of resources towards supporting technology and indigenous companies. He goes on to recommend a framework to integrate endogenous and exogenous approaches to development and proposes a greater role for the region and the European Union to control investment incentives and monitor multinationals.

Introduction PART 1: GLOBALISATION OF PRODUCTION, TECHNOLOGY AND INNOVATION Theoretical Approaches and Structural Changes Foreign Direct Investment and Location Decision Making Globalisation and Economic Development PART 2: THE BARGAINING RELATIONSHIP BETWEEN GOVERNMENTS AND MNCS Government-MNC Relations A Model of Government-MNC Bargaining
Nissan's Investment in the UK Siemens' Investment in the UK PART 3: INWARD INVESTMENT POLICY AND THE IMPACT OF ON ECONOMIC DEVELOPMENT Inward Investment in the UK Inward Investment in the UK regions Inward Investment and Regional Development in North East England Conclusions and Policy Recommendations