EPRC Seminar: How much grant shifts how much investment?

On 28 April, EPRC hosted a seminar by Prof. Colin Wren from the University of Newcastle as part of the EPRC European Policy Seminar Series. Colin Wren's presentation 'How much grant shifts how much investment? A panel data analysis for UK regional policy' analysed the role of policy in securing the location of foreign direct investment (FDI) across the regions of Great Britain over the period 1985-2005. The policy instruments comprise grants, the coverage of assisted areas and non-financial support. The paper finds effects that are stronger than in recent plant-based studies, and puts a price on each job diverted as a result of policy, which is constant for different programming periods. In addition, the coverage of the assisted areas exerts a positive location effect. However, the overall regional policy effect is small in relation to the scale of UK inward investment.