Profits from UK Foreign Direct Investment A view from the micro-data

Tullio Buccellato, Eric Scheffel, Andrew Thomas

Research output: Journal PublicationArticlepeer-review


This article uses the Annual Foreign Direct Investment survey to investigate the changing patterns and the determinants of profits from the foreign subsidiaries of UKbased multinational enterprises. The results show that these profits are greatest in countries which are closely related to the UK historically, linguistically and geographically particularly the USA and the Netherlands. However, low tax economies and the BRICs Brazil, Russia, India and China are also becoming more significant. Econometric analysis shows that factors such as openness to trade, GDP per capita, population, human capital and unit labour costs help to explain the level of these profits.

Original languageEnglish
Pages (from-to)108-117
Number of pages10
JournalEconomic and Labour Market Review
Issue number4
Publication statusPublished - Apr 2011
Externally publishedYes

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management


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