This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Location determinants of new foreign-owned manufacturing plants

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Cletus C. Coughlin
Eran Segev

Additional information is available for the following registered author(s):

Abstract

Manufacturing employment in the United States has tended to fall since 1979. Geographically, the Northeast and Mideast regions have incurred the brunt of this decline and, except in the Southwest region, urban countries have tended to fare worse than rural countries. Meanwhile, foreign-owned manufacturing has been playing a larger role in the U.S. economy, especially in the Great Lakes and Southeast regions. The current research explains the pattern-among regions as well as between rural and urban countries-of new foreign plant location. Proxies measuring economic size, labor force quality, agglomeration and urbanization economies, and transportation infrastructure are found to affect the location of new foreign-owned plants positively, while proxies for unit labor costs and taxes are found to deter the location of new plants. The key advantages of the Great Lakes region stem from relatively low unit labor costs and high manufacturing density, while high manufacturing density and low taxes are the key advantages of the Southeast region. Comparing urban with rural countries, nearly all the explanatory variables possess average values for urban countries that are more favorable to foreign direct investment. For example, the labor force is relatively more productive and skilled in urban than in rural countries.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://research.stlouisfed.org/wp/1997/97-018.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1997-018.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 1997
Date of revision:
Publication status: Published in Journal of Regional Science, May 2000, 40(2), pp. 323-51
Handle: RePEc:fip:fedlwp:1997-018

Contact details of provider:
Postal: P.O. Box 442, St. Louis, MO 63166
Fax: (314)444-8753
Web page: http://www.stlouisfed.org/
More information through EDIRC

Order Information:
Email:

For technical questions regarding this item, or to correct its listing, contact: (Diane Rosenberger).

Related research
Keywords: Investments; Foreign - United States ; Manufactures ; Industrial location;

Other versions of this item:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dewenter, Kathryn L, 1995. "Do Exchange Rate Changes Drive Foreign Direct Investment?," Journal of Business, University of Chicago Press, vol. 68(3), pages 405-33, July. [Downloadable!] (restricted)
  2. 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 1076-94, December. [Downloadable!] (restricted)
    Other versions:
  3. Keith Head & John Ries & Deborah Swenson, 1994. "Agglomeration Benefits and Location Choice: Evidence from Japanese Manufacturing Investment in the United States," NBER Working Papers 4767, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Gerald Carlino & Richard Voith & Brian Cody, 1991. "The effects of exchange rate and productivity changes on U.S. industrial output at the state level," Working Papers 91-16, Federal Reserve Bank of Philadelphia.
  5. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January. [Downloadable!] (restricted)
  6. Irving B. Kravis & Robert E. Lipsey, 1982. "The Location of Overseas Production and Production for Export by U.S. Multinational Firms," NBER Working Papers 0482, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July. [Downloadable!] (restricted)
  8. Thomas H. Klier, 1995. "The geography of lean manufacturing: recent evidence from the U.S. auto industry," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-16. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Barry, Frank & Görg, Holger & Strobl, Eric, 2001. "Foreign Direct Investment, Agglomerations and Demonstration Effects: An Empirical Investigation," CEPR Discussion Papers 2907, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Salvary, Stanley, 2007. "The impact of firm-type dominance on regional manufacturing growth," MPRA Paper 4623, University Library of Munich, Germany, revised 28 Dec 2008. [Downloadable!]
  3. Guimaraes, Paulo & Figueiredo, Octávio & Woodward, Douglas, 2002. "Modeling industrial location decisions in U.S. counties," ERSA conference papers ersa02p060, European Regional Science Association. [Downloadable!]
    Other versions:
  4. Lisa De Propris & Nigel Driffield & Stefano Menghinello, 2005. "local industrial systems and the location of FDI in Italy," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 12(1), pages 105-121, February. [Downloadable!] (restricted)
  5. William R. Latham & Simon Condliffe, 2005. "Not So Footloose after All: Locational Behavior of Information Technology Establishments in the United States, 1989-1998," Working Papers 05-15, University of Delaware, Department of Economics. [Downloadable!]
  6. Hilber, Christian A. L. & Voicu, Ioan, 2007. "Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania," MPRA Paper 5137, University Library of Munich, Germany. [Downloadable!]
  7. Harding, Torfinn & Smarzynska Javorcik, Beata, 2007. "Developing Economies and International Investors: Do Investment Promotion Agencies Bring Them Together?," CEPR Discussion Papers 6418, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. O. Ashton Morgan & Simon Condliffe, 2009. "Spatial Heterogeneity in Environmental Regulation Enforcement and the Firm Location Decision among U.S. Counties," Working Papers 09-12, Department of Economics, Appalachian State University. [Downloadable!]
  9. Davis, David E. & Schluter, Gerald E., 2005. "Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry," MPRA Paper 6654, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  10. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2007. "Cross-border Mergers and Acquisitions: On Revealed Comparative Advantage And Merger Waves," Tinbergen Institute Discussion Papers 08-013/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  11. BARRIOS, Salvador & GORG, Holger & STROBL, Eric, 2003. "Multinationals' location choice, agglomeration economies and public incentives," CORE Discussion Papers 2003017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  12. Eckhardt Bode & Peter Nunnenkamp, 2007. "Does Foreign Direct Investment Promote Regional Development in Developed Countries? A Markov Chain Approach for US States," Kiel Working Papers 1374, Kiel Institute for the World Economy. [Downloadable!]
  13. Argentino Pessoa, 2008. "Multinational Corporations, Foreign Investment, and Royalties and License Fees: Effects on Host-Country Total Factor Productivity," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 28, pages 6-31, December. [Downloadable!]
  14. Chen, George Shih-Ku, 2009. "Agglomeration economies and the location of Taiwanese investment in China," MPRA Paper 13896, University Library of Munich, Germany. [Downloadable!]
  15. George Shih-Ku Chen, 2009. "Are Financial Sector Policies Effective In Deepening The Malaysian Financial System?," Monash Economics Working Papers 02/09, Monash University, Department of Economics. [Downloadable!]
  16. Elisabet Viladecans Marsal & Josep Maria Arauzo Carod, . "Industrial Location at the Intra-metropolitan Level: A Negative Binomial Approach," Studies on the Spanish Economy 224, FEDEA. [Downloadable!]
    Other versions:
  17. C. Dembour, 2008. "Competition for Business Location: A Survey," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 89-111, June. [Downloadable!] (restricted)
  18. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers 0003, Spatial Economics Research Centre, LSE. [Downloadable!]
  19. Andrzej Cieślik, 2005. "Regional characteristics and the location of foreign firms within Poland," Applied Economics, Taylor and Francis Journals, vol. 37(8), pages 863-874, May. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? Data contributors to RePEc receive monthly emails with details about downloads and abstract views of their works.

This page was last updated on 2009-10-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.