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.

This text examines the relationship between multinational companies, regional development and governments, using an international political economy framework of bargaining between government and multinationals. It critically analyzes the role of foreign investment in economic development, and examines how governments can link inward investment to regional economic development. Based on extensive use of data, interviews and case studies of Siemens and Nissan's UK investment, the book shows why MNCs have invested in the UK in the past, how they bargained with the government, and what the impact was on the national and regional economies. In particular, through linking the strategy of multinationals to the location advantages of the UK, it is argued that labour flexibility and incentives were crucial to investment decisions. The author recommends a framework to integrate endogenous and exogenous approaches to developments and proposes a greater role for the region and the EU to control 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