IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v6y2012i5p1-18.html
   My bibliography  Save this article

Industry-Based Foreign Direct Investment Around State Gubernatorial Elections: Evidence From The United States

Author

Listed:
  • James Tanoos

Abstract

American governors acquire enhanced regulatory and decision-making powers for economic development, the prevalence of statewide business scorecards and other factors are prompting voters to make these politicians and their agents responsible for the financial well-being of their states. Consequently, governors are expanding their policymaking authority and have gone to greater lengths to entice global executives to commit their increasingly mobile capital to their locales in efforts to increase jobs. More than any other sector, manufacturing is the area in which American incoming foreign direct investment is concentrated or what this study will refer to as international industry investment. Data has been collected from three global-manufacturing related Bureau of Economic Analysis datasets, namely FDI in the US- Employment of Nonbank U.S. Affiliates, by State, FDI in the US- Manufacturing Employment of Majority-Owned Nonbank U.S. Affiliates, and Gross Property, Plant, and Equipment of Nonbank U.S. Affiliates, by State. Based on a cross-sectional analysis of this information and gubernatorial tenure, it has been determined that global executives are most likely to devote their industry-based capital to a state in the year after the reelection of a governor and in the second term of an administration.

Suggested Citation

  • James Tanoos, 2012. "Industry-Based Foreign Direct Investment Around State Gubernatorial Elections: Evidence From The United States," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(5), pages 1-18.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:5:p:1-18
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v6n5-2012/GJBR-V6N5-2012-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    2. Tain-Jy Chen & Homin Chen & Ying-Hua Ku, 2004. "Foreign direct investment and local linkages," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 320-333, July.
    3. Hines, James R, Jr, 1996. "Altered States: Taxes and the Location of Foreign Direct Investment in America," American Economic Review, American Economic Association, vol. 86(5), pages 1076-1094, December.
    4. Robert C. Feenstra, 1997. "The Effects of US Trade Protection and Promotion Policies," NBER Books, National Bureau of Economic Research, Inc, number feen97-1, March.
    5. Wolfgang Keller & Arik Levinson, 2002. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 691-703, November.
    6. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    7. Simmons, Beth A. & Elkins, Zachary, 2004. "The Globalization of Liberalization: Policy Diffusion in the International Political Economy," American Political Science Review, Cambridge University Press, vol. 98(1), pages 171-189, February.
    8. Feenstra, Robert C. (ed.), 1997. "The Effects of U.S. Trade Protection and Promotion Policies," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226239514, December.
    9. Chase, Kerry A., 2003. "Economic Interests and Regional Trading Arrangements: The Case of NAFTA," International Organization, Cambridge University Press, vol. 57(1), pages 137-174, January.
    10. Eisinger, Peter, 1990. "Do the American States Do Industrial Policy?," British Journal of Political Science, Cambridge University Press, vol. 20(4), pages 509-535, October.
    11. D Sethi & S E Guisinger & S E Phelan & D M Berg, 2003. "Trends in foreign direct investment flows: a theoretical and empirical analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 315-326, July.
    12. Kevin T. Leicht & J. Craig Jenkins, 1994. "Three Strategies of State Economic Development: Entrepreneurial, Industrial Recruitment, and Deregulation Policies in the American States," Economic Development Quarterly, , vol. 8(3), pages 256-269, August.
    13. Robert C. Feenstra, 1997. "Introduction to "The Effects of U.S. Trade Protection and Promotion Policies"," NBER Chapters, in: The Effects of US Trade Protection and Promotion Policies, pages 1-7, National Bureau of Economic Research, Inc.
    14. Andrew John & Jill Klein, 2003. "The Boycott Puzzle: Consumer Motivations for Purchase Sacrifice," Management Science, INFORMS, vol. 49(9), pages 1196-1209, September.
    15. Charles K. Rowley & Willem Thorbecke & Richard E. Wagner, 1995. "Trade Protection In The United States," Books, Edward Elgar Publishing, number 388.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Breinlich, Holger & Leromain, Elsa & Novy, Dennis & Sampson, Thomas, 2020. "Voting with their money: Brexit and outward investment by UK firms," European Economic Review, Elsevier, vol. 124(C).
    2. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws? [‘Antidumping Laws in the US; Use and Welfare Consequences’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 94-138.
    3. Hasanat Shah, Syed & Ahmad Nawaz, Hakro, 2006. "Economic rationale, trade impact and extent of antidumping – case study of Pakistan," MPRA Paper 35817, University Library of Munich, Germany, revised 2007.
    4. Paul Brenton, 2014. "Anti-dumping policies in the EU and trade diversion," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 4, pages 67-81, World Scientific Publishing Co. Pte. Ltd..
    5. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous responses of firms to trade protection," Journal of International Economics, Elsevier, vol. 76(2), pages 371-383, December.
    6. Cooray, Arusha & Tamazian, Artur & Vadlamannati, Krishna Chaitanya, 2014. "What drives FDI policy liberalization? An empirical investigation," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 179-189.
    7. Bruce A. Blonigen, 2019. "In Search of Substitution Between Foreign Production and Exports," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 9, pages 293-323, World Scientific Publishing Co. Pte. Ltd..
    8. Bown, Chad P., 2004. "Trade disputes and the implementation of protection under the GATT: an empirical assessment," Journal of International Economics, Elsevier, vol. 62(2), pages 263-294, March.
    9. Ito, Keiko & Fukao, Kyoji, 2005. "Foreign direct investment and trade in Japan: An empirical analysis based on the Establishment and Enterprise Census for 1996," Journal of the Japanese and International Economies, Elsevier, vol. 19(3), pages 414-455, September.
    10. Hong, Seiwoong & Lee, Junyong & Oh, Frederick Dongchuhl & Shin, Donglim, 2023. "Religion and foreign direct investment," International Business Review, Elsevier, vol. 32(1).
    11. Lorenzo Trimarchi, 2020. "Trade Policy and the China Syndrome," Working Papers ECARES 2020-15, ULB -- Universite Libre de Bruxelles.
    12. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
    14. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    15. Malhotra Nisha & Rus Horatiu & Kassam Shinan, 2008. "Antidumping Duties in the Agriculture Sector: Trade Restricting or Trade Deflecting?," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-19, June.
    16. Co, Catherine Y., 2001. "Trade, foreign direct investment and industry performance," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 163-183, January.
    17. Nishitateno, Shuhei, 2013. "Global production sharing and the FDI–trade nexus: New evidence from the Japanese automobile industry," Journal of the Japanese and International Economies, Elsevier, vol. 27(C), pages 64-80.
    18. Russell Hillberry & Phillip McCalman, 2016. "Import dynamics and demands for protection," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1125-1152, August.
    19. Ahmed Nawaz Hakro & Syed Hasanat Shah, 2007. "Economic Rationale, Trade Impact and Extent of Antidumping – A Case Study of Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(1), pages 79-98, Jan-Jun.
    20. Ludo Cuyvers & Michel Dumont, 2005. "EU Anti‐dumping Measures against ASEAN Countries: Impact on Trade Flows," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 249-271, September.

    More about this item

    Keywords

    Administration; Agents; Politics; Capital Mobility; Communication; Competitive Advantage; Economic Development; Election; Foreign Direct Investment; Trade;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:6:y:2012:i:5:p:1-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.