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Location Determinants of Greenfield Foreign Investment in the United States: Evidence at the Metropolitan Statistical Area Level

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  • Hong Zhuang

    (Indiana University South Bend)

Abstract

This paper explores factors influencing greenfield foreign investment's location decisions using metropolitan statistical area data in the U.S. from 2003 to 2009. The findings suggest that greenfield foreign plants in the U.S. favor metropolitan areas with greater market demand and larger populations. In addition, high levels of existing manufacturing activities and high wages appear to be attractive to foreign firms as well. However, economic distressed areas and agglomeration in service industries fail to have significant effects on the location choice of greenfield FDI.

Suggested Citation

  • Hong Zhuang, 2016. "Location Determinants of Greenfield Foreign Investment in the United States: Evidence at the Metropolitan Statistical Area Level," Economics Bulletin, AccessEcon, vol. 36(2), pages 1194-1201.
    • Handle: RePEc:ebl:ecbull:eb-16-00222
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I2-P116.pdf
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    References listed on IDEAS

    as
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    6. Coughlin, Cletus & Terza, Joseph V. & Arromdee, Vachira, 1990. "State government effects on the location of foreign direct investment," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 20(1), pages 1-14.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Greenfield foreign direct investment; Location decisions;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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