The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK
With the advent of globalization, there has been an increasing trend for the development of FDI since the mid-1980s. The host country can not only benefit from FDI as a source of external capital, but also can benefit through the technology transfer and technological spillover effects. In the previo...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2007
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| Online Access: | https://eprints.nottingham.ac.uk/21341/ |
| _version_ | 1848792233113812992 |
|---|---|
| author | DENG, XIANG |
| author_facet | DENG, XIANG |
| author_sort | DENG, XIANG |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | With the advent of globalization, there has been an increasing trend for the development of FDI since the mid-1980s. The host country can not only benefit from FDI as a source of external capital, but also can benefit through the technology transfer and technological spillover effects. In the previous literature, some researchers concentrate on studying the effects of FDI on the economic performance indicators, while others focus on examining the impacts of FDI on the firms.
In this dissertation, the impacts of FDI on profitability of domestic firms in the UK will be examined by using panel approach, which can assess the relative importance of cross-sectional and time-series factors. The data are mainly from the UK manufacturing industry firm-level data for the period 1994-2003. In addition, the following hypotheses are also examined:
H1: The share of foreign-owned firms in total industry domestic output will affect the profitability of domestic firms.
H2: The share of foreign-owned firms in total industry export will impact domestic firms profitability.
H3: the export activity of the foreign firms will affect the profitability of domestic firms
The findings of this study can be concluded as follows. Firstly, with the increasing of the share of foreign-owned firms output in the total domestic industry output, the domestic firms profitability declined. Secondly, the share of foreign firms in total industry export increases will enhance the profitability of domestic firms. Thirdly, the increasing industry concentration can spur domestic firms profitability. Fourthly, with firms market shares increasing, the firms profitability will enhance accordingly. Finally, the exporter activity does not affect domestic firms profitability. |
| first_indexed | 2025-11-14T18:41:09Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-21341 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:41:09Z |
| publishDate | 2007 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-213412018-01-18T02:09:38Z https://eprints.nottingham.ac.uk/21341/ The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK DENG, XIANG With the advent of globalization, there has been an increasing trend for the development of FDI since the mid-1980s. The host country can not only benefit from FDI as a source of external capital, but also can benefit through the technology transfer and technological spillover effects. In the previous literature, some researchers concentrate on studying the effects of FDI on the economic performance indicators, while others focus on examining the impacts of FDI on the firms. In this dissertation, the impacts of FDI on profitability of domestic firms in the UK will be examined by using panel approach, which can assess the relative importance of cross-sectional and time-series factors. The data are mainly from the UK manufacturing industry firm-level data for the period 1994-2003. In addition, the following hypotheses are also examined: H1: The share of foreign-owned firms in total industry domestic output will affect the profitability of domestic firms. H2: The share of foreign-owned firms in total industry export will impact domestic firms profitability. H3: the export activity of the foreign firms will affect the profitability of domestic firms The findings of this study can be concluded as follows. Firstly, with the increasing of the share of foreign-owned firms output in the total domestic industry output, the domestic firms profitability declined. Secondly, the share of foreign firms in total industry export increases will enhance the profitability of domestic firms. Thirdly, the increasing industry concentration can spur domestic firms profitability. Fourthly, with firms market shares increasing, the firms profitability will enhance accordingly. Finally, the exporter activity does not affect domestic firms profitability. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21341/1/1.pdf DENG, XIANG (2007) The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | DENG, XIANG The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title | The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title_full | The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title_fullStr | The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title_full_unstemmed | The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title_short | The impact of Foreign Direct Investment on Profitability of Domestic Firms in the UK |
| title_sort | impact of foreign direct investment on profitability of domestic firms in the uk |
| url | https://eprints.nottingham.ac.uk/21341/ |