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Do Inward Investors Achieve their Job Targets? *
Author(s) -
Jones Jonathan,
Wren Colin
Publication year - 2004
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.2004.00090.x
Subject(s) - skepticism , job creation , investment (military) , economics , labour economics , business , political science , philosophy , epistemology , politics , law
Abstract The paper utilizes data for north‐east England over the period 1985–98 to examine if foreign‐owned start‐up plants achieve their job targets. Different models are estimated, each shedding light on the relationship between the jobs promised by plants in their initial investment and their actual employment attained. On average, it is found that the plants achieve their job targets, but larger plants fall someway short. It is argued that these plants may deliberately overstate the number of jobs, and that the employment‐creation claims of inward investors and economic development agencies should be treated with skepticism.