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The Role of Inward Investment in Urban Economic Development: The Cases of Bristol, Cardiff and Plymouth

Plymouth Business School, University of Plymouth, Drake Circus, Plymouth, Devon PL4 8AA, UK.

Rose Gripaios

Plymouth Business School, University of Plymouth, Drake Circus, Plymouth, Devon PL4 8AA, UK.

Max Munday

Welsh Economy Research Unit, CardiffBusinessSchool, 66 Park Place, Cardiff CF1 3 AS, Wales, UK. mundaymc{at}cf.uk

This paper examines the role of manufacturing and services foreign direct investment (FDI) in the restructuring of the three large cities in the South West and Wales: Bristol, Plymouth and Cardiff. Key differences in the FDI stock of each city are analysed, with special attention given to location rationale and quality of investments. Bristol is found to be comparatively successful in attracting high-grade manufacturing, regional service centres of manufacturing companies, and financial and computer services firms. Location and policy influences have meant that Cardiff and Plymouth have been more dependent on 'production only' facilities; and Plymouth, in particular, has had difficulty attracting financial and business services investment. Policy and practical ramifications of the study are explained.

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