Foreign investment in Scotland

A significant feature of the UK economy throughout the post-war period has been the growth in direct foreign investment in manufacturing industries. For the host
nation the main benefits are employment creation, income generation and import
reduction or export expansion. Scotland has been particularly successful in attracting the lion's inward investment for example in the period 1945- 1965 a total of 108,500 jobs were created by foreign firms setting up manufacturing units in the despite its size, obtained 46,221 (42.6%), whereas the second most SE England, gained only 16,926 (15.6%). The reasons for this success have been attributed primarily to a combination of the availability of labour in Scotland, the financial inducements offered by central government as part of regional policy and, the undoubted attraction of the environment, notably of course golf courses, for foreign businessmen. This brief paper explores the nature of Scotland's direct foreign investment and the reasons for its success.