Negative competition effects outweigh benefits of foreign investment on UK productivity.
The article explores how foreign investment affects UK manufacturing plants from 1974 to 1995. It looks at different ways this impact can happen, like competition and absorption. The study finds that sometimes the negative effects outweigh the benefits, and that connections between different industries are more common than within the same industry. The researchers also discover that the overall effect of clustering isn't very significant. The study shows that measuring these effects is tricky because they are complex and varied.