NIGEL PAIN is a Senior Research Fellow at the National Institute of Economic and Social Research. His duties include the direction of a team of researchers in the production of the forecasts and commentary on the world economy published in the National Institute Economic Review every quarter. His research interests include economic integration in the European Union and the transition economies; the determinants of the location of economic activities; the impact of foreign direct investment and multinational firms on national labour markets and growth prospects. Before joining NIESR he worked at HM Treasury. He has published widely, including papers in The Economic Journal, European Economic Review and the Review of Economics and Statistics. AE(00): Nigel Pain co-edited and contributed to Innovation, Investment and the Diffusion of Technology in Europe published by Cambridge University Press in 1999, and to Capital Market Liberalisation in Europe, published by Kogan Page in 1997.