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The Determinants of Employment in Foreign Firms in the UK Food Manufacturing Sector: A Note
Author(s) -
Morgan C. W.,
Wakelin Katharine
Publication year - 2003
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2003.tb00050.x
Subject(s) - foreign direct investment , manufacturing sector , business , tariff , food industry , food sector , manufacturing , propensity score matching , investment (military) , international economics , affect (linguistics) , labour economics , international trade , economics , marketing , agriculture , macroeconomics , food science , ecology , statistics , mathematics , biology , politics , political science , law , linguistics , chemistry , philosophy
This paper seeks to evaluate the factors that have given rise to the large presence of foreign firms in the UK food and drink manufacturing sector. Foreign Direct Investment (FDI) in food and drink manufacturing is very high – the second highest for any manufacturing sector in the UK economy. An empirical model is tested on 48 5‐digit sectors in the food industry and we find that brands, skills and a low propensity to export positively affect employment in EU‐owned firms. Alternatively, employment in non‐EU owned firms is affected by propensity to export factors and by the effective tariff rate.