Research and analysis

Estimating FDI and its impact in the United Kingdom

This analytical report builds on the first phase of DIT’s analysis to further explore how inward foreign direct investment (FDI) affects the UK economy.

From:
Department for International Trade
Published
5 March 2021

Documents

Understanding FDI and its impact in the United Kingdom for DIT's investment promotion activities and services - phase 2 analytical report

PDF, 1.49 MB, 56 pages

Details

Understanding how inward FDI affects the UK economy is a vital step in realising the Department for International Trade’s (DIT) vision of a value-driven investment promotion strategy.

Building on the first phase of DIT’s analysis, the updated methodology in the report:

  • estimates the economic impact using foreign employment as a measure of FDI to reflect changing industrial composition
  • enhances the model’s ability to capture the economy wide impacts of FDI on Gross Value Added (GVA)
  • develops a good understanding of the distribution of FDI activities in the UK regions

This was published originally by Department for International Trade (DIT) which has since moved to the Department for Business and Trade (DBT).

Published 5 March 2021