The Conversation:
Over here and over productive: let's welcome foreign owners
30 September 2013
The proportion of UK-quoted shares owned by overseas investors passed the 50% mark for the first time last week. Predictably there was much wringing of hands about the decline of British business and short-termism of UK investors. But the fact is that the growth in foreign ownership is something to be welcomed, not feared. First and foremost, it is a sign of confidence in the long-run prospects of the economy. Despite the policy mistakes over premature austerity in the last few years, the underlying fundamentals of the UK economy are strong. As pointed out by the LSE Growth Commission the stable rule of law, flexible labour markets and good competitive conditions are attractive to international investors.
This article was published online by The Conversation on September 30, 2013
Link to article here
Related publications
The Impact of Alternative Paths of Fiscal Consolidation on Output and Employment in the UK, Nitika Bagaria, Dawn Holland, Jonathan Portes and John Van Reenen. Article in VOX, 14 August 2012.
Executive Summary, LSE Growth Commission Report, January 2013
Investing for Prosperity: Skills, Infrastructure and Innovation, Report of the LSE Growth Commission, January 2013
LSE Growth Commission book – Investing for Prosperity – A manifesto for growth, Tim Besley and John Van Reenen (Eds), LSE publication, September 2013
Details
Purchase details here
Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission webpage