The Economic Impact of Outward Direct Investment

Summary

The UK Department for Business and Trade commissioned a report to investigate the economic impact of Outward Direct Investment (ODI) on the UK economy, specifically regarding earnings, productivity, employment, and exports, and to assess if it causes a 'hollowing out' effect. The research, conducted by LSE’s Trade Policy Hub using ONS data and regression models, concluded that ODI is generally profitable (7.3% average return) and positively associated with productivity, with no evidence of hollowing out for an average firm. However, ODI in the services sector did not show an association with increased productivity.

Key Facts

Source Document

https://example-government.gov/policy-document-link