IDEAS home Printed from https://ideas.repec.org/a/sae/anname/v516y1991i1p91-105.html
   My bibliography  Save this article

Trade Protection and Foreign Direct Investment in the U.S

Author

Listed:
  • DOMINICK SALVATORE

Abstract

The rising wave of foreign direct investments in the United States arose primarily from the desire and need of European and Japanese firms to match the global perspective and operations of American multinationals. Increasingly, however, foreign direct investments—especially many recent Japanese ones—are the result of U.S. trade protection or the threat thereof. By providing domestic jobs, foreign direct investments tend to reduce or defuse the threat of protectionism. Specific industry data in the U.S. color television, automobile, and steel industries clearly indicate that a major force stimulating foreign direct investments, especially Japanese ones, in the United States during the 1970s and 1980s was the escalation of U.S. protectionism in these industries. Other major industries, such as food and chemicals, which are much less affected by U.S. protectionism, have received foreign direct investments primarily as the result of the globalization process that has been taking place throughout the world.

Suggested Citation

  • Dominick Salvatore, 1991. "Trade Protection and Foreign Direct Investment in the U.S," The ANNALS of the American Academy of Political and Social Science, , vol. 516(1), pages 91-105, July.
    • Handle: RePEc:sae:anname:v:516:y:1991:i:1:p:91-105
    DOI: 10.1177/0002716291516001008
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0002716291516001008
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0002716291516001008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dominick Salvatore, 1989. "A model of dumping and protectionism in the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 125(4), pages 763-781, December.
    2. G. D. A. MacDougall, 1960. "THE BENEFITS and COSTS OF PRIVATE INVESTMENT FROM ABROAD: A THEORETICAL APPROACH," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 13-35, March.
    3. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    4. Salvatore, Dominick, 1985. "The new protectionism and the threat to world welfare: Editor's introduction," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 1-22.
    5. Brecher, Richard A. & Findlay, Ronald, 1983. "Tariffs, foreign capital and national welfare with sector-specific factors," Journal of International Economics, Elsevier, vol. 14(3-4), pages 277-288, May.
    6. Salvatore, Dominick, 1987. "Import penetration, exchange rates, and protectionism in the United States," Journal of Policy Modeling, Elsevier, vol. 9(1), pages 125-141.
    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. Basu, Arnab K. & Chau, Nancy H., 1999. "Adverse selection, asymmetric information, and foreign investment policies," International Review of Economics & Finance, Elsevier, vol. 8(3), pages 239-252, September.
    2. Bolling, H. Christine, 1992. "The European Community Presence in U.S. Agriculture," Foreign Agricultural Economic Report (FAER) 147998, United States Department of Agriculture, Economic Research Service.
    3. Blanchard, Emily J., 2010. "Reevaluating the role of trade agreements: Does investment globalization make the WTO obsolete?," Journal of International Economics, Elsevier, vol. 82(1), pages 63-72, September.
    4. Zeshan Atique & Mohsin Hasnain Ahmad & Usman Azhar, 2004. "The Impact of FDI on Economic Growth under Foreign Trade Regimes: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 707-718.
    5. Gilbert, John, 2000. "Raw Materials, Processing Incentives And Foreign Ownership," 2000 Annual meeting, July 30-August 2, Tampa, FL 21866, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. John Gilbert & Edward Tower, 1998. "Import Quotas, Foreign Capital and Income Distribution: A Comment," The American Economist, Sage Publications, vol. 42(2), pages 90-93, October.
    7. Smruti Ranjan Behera, 2015. "Technology Spillover And Determinants Of Foreign Direct Investment: An Analysis Of Indian Manufacturing Industries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(3), pages 55-83, September.
    8. Broll, Udo & Hansen, Sabine & Marjit, Sugata, 2004. "Domestic labor, foreign capital and national welfare," Dresden Discussion Paper Series in Economics 12/04, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    9. Archanun Kohpaiboon, 2003. "Foreign trade regimes and the FDI-Growth Nexus: a case study of Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 55-69.
    10. Philip L. Brock & Stephen J. Turnovsky, 1992. "The Growth and Welfare Consequences of Differential Tariffs With Endogenously-Supplied Capital and Labor," NBER Working Papers 4011, National Bureau of Economic Research, Inc.
    11. Thi Ngoc Thuyen Truong & Juthathip Jongwanich & Eric D. Ramstetter, 2015. "Productivity spillovers from foreign multinationals and trade protection: firm-level analysis of Vietnamese manufacturing," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(2), pages 30-46, November.
    12. Kohpaiboon, Archanun, 2006. "Foreign direct investment and technology spillover: A cross-industry analysis of Thai manufacturing," World Development, Elsevier, vol. 34(3), pages 541-556, March.
    13. Jai Sheen Mah, 2010. "Foreign Direct Investment Inflows and Economic Growth: The Case of Korea," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 726-735, November.
    14. Hoekman, Bernard & Saggi, Kamal, 1999. "Multilateral disciplines for investment-related policies," Policy Research Working Paper Series 2138, The World Bank.
    15. Emily J. Blanchard, 2009. "Trade taxes and international investment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 882-899, August.
    16. M.A.B. Siddique, 1997. "Economic development: Then and now," Economics Discussion / Working Papers 97-05, The University of Western Australia, Department of Economics.
    17. Michael J. Hiscox, 2004. "International Capital Mobility And Trade Politics: Capital Flows, Political Coalitions, And Lobbying," Economics and Politics, Wiley Blackwell, vol. 16(3), pages 253-285, November.
    18. Konstantin M. Wacker, 2011. "Do multinationals beat down developing countries' export prices? The impact of FDI on net barter terms of trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 211, Ibero-America Institute for Economic Research.
    19. Thuyen, Truong Thi Ngoc & Jongwanich, Juthathip & Ramstetter, Eric D., 2017. "Trade protection and productivity differentials between multinationals and local firms in Vietnamese manufacturing," AGI Working Paper Series 2017-01, Asian Growth Research Institute.
    20. Chakraborty, Brati Sankar, 2001. "Welfare consequence of capital inflow for a small tariff-protected economy," Journal of Development Economics, Elsevier, vol. 66(1), pages 305-316, October.

    More about this item

    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:sae:anname:v:516:y:1991:i:1:p:91-105. 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: SAGE Publications (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.