BIG foreign companies that established UK business plants over a 14-year period exaggerated their job creation claims, a new study suggests.
Companies deliberately overstated job claims to attract business support and advice, conclude researchers from the University of Newcastle Upon Tyne Business School. The team say ambitious job creation targets can be advantageous to inward investment agencies, like regional development agencies (RDAs), and warn that such claims should be treated with “a high degree of scepticism”.
The study, published in the Oxford Bulletin of Economics and Statistics, reveals that many firms which invested in new plants in North East England – a UK boom area for foreign inward investment in the 1980s and 1990s – fell short of their job creation targets. It also reports that firms that received help for their business plants from the main investment agency at the time, Invest UK, were less likely to achieve their employment goals.
Dr Colin Wren | alfa
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