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Foreign Investment in the Nonmetropolitan U.S. South and Midwest: A Case of Mimetic Location Behavior?

Author

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  • Bill Luker Jr.

    (Center on Wisconsin Strategy, University of Wisconsin, 1180 Observatory Drive Madison, WI 537706 USA, bluker@ssc.wisc.edu)

Abstract

This study asks a basic question about foreign direct manufacturing investment (FDI) in the United States: are its location patterns really "foreign"? This question is motivated by the observation that rather than changing the geography of U.S. manufacturing, foreign manufacturers appear to be mimicking the location patterns of their domestically owned counterparts. A conditional logit procedure is used to analyze the reasons why foreign manufacturers have been attracted to nonmetropolitan counties of the South and Midwest. This analysis supports the case for a mimetic explanation of their location decisions.

Suggested Citation

  • Bill Luker Jr., 1998. "Foreign Investment in the Nonmetropolitan U.S. South and Midwest: A Case of Mimetic Location Behavior?," International Regional Science Review, , vol. 21(2), pages 163-184, August.
    • Handle: RePEc:sae:inrsre:v:21:y:1998:i:2:p:163-184
    DOI: 10.1177/016001769802100204
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    References listed on IDEAS

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