Title

Foreign Direct Investment in the United States: Issues, Magnitudes, and Location Choice of New Manufacturing Plants

Year

1993

Abstract

What effect does foreign direct investment (FDI) have on job creation, wages, and productivity in the U.S.? How does FDI impact the budget deficit? How do changes in states' fiscal policy affect plant location choices? Ondrych and Wasylenko address these and other politically-charged questions concerning FDI. Provided is empirical evidence drawn from a pooled cross-section and time-series data set that identifies the criteria foreigners use to make location decisions. The authors also develop a model, against which they compare their findings, and review policy options available at the state and federal levels. Information provided will help states shape, focus, and refine their recruitment strategies for attracting foreign plants.

Contents

  1. Introduction
  2. Location Choices of New Foreign Plants in the United States
  3. Modeling the Location of New Plants
  4. Empirical Results and Analysis
  5. The Potential Effect of Changes in the Fiscal Policy of States on State Selection
  6. Conclusions and Policy Implications

ISBN

9780880991391 (pbk.)

Subject Areas

GLOBAL ISSUES; Globalization; Outsourcing; REGIONAL ISSUES; Business incentives