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Local labor market conditions and foreign direct investment flows in the U.S

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  • Kostas Axarloglou

Abstract

This study evaluates the impact of industry and state-specific economic conditions on inward Foreign Direct Investment (FDI) in several states in the U.S. FDI inflows in the U.S. are attracted by high industry and state specific labor productivity, and also by high state spending on education. Multinational companies seem to highly value a productive and educated labor force. Copyright International Atlantic Economic Society 2004

Suggested Citation

  • Kostas Axarloglou, 2004. "Local labor market conditions and foreign direct investment flows in the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(1), pages 62-66, March.
  • Handle: RePEc:kap:atlecj:v:32:y:2004:i:1:p:62-66
    DOI: 10.1007/BF02298619
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    References listed on IDEAS

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    1. Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May.
    2. Linda Goldberg & Joseph Tracy, 2000. "Exchange Rates and Local Labor Markets," NBER Chapters,in: The Impact of International Trade on Wages, pages 269-307 National Bureau of Economic Research, Inc.
    3. 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).
    4. Joseph Friedman & Hung-Gay Fung & Daniel A. Gerlowski & Jonathan Silberman, 1996. "A Note on "State Characteristics and the Location of Foreign Direct Investment within the United States."," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 367-368, May.
    5. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    6. Head, C. Keith & Ries, John C. & Swenson, Deborah L., 1999. "Attracting foreign manufacturing: Investment promotion and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 197-218, March.
    7. Hatzius, Jan, 2000. "Foreign direct investment and factor demand elasticities," European Economic Review, Elsevier, vol. 44(1), pages 117-143, January.
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    Cited by:

    1. Bala Ramasamy & Matthew Yeung, 2010. "A causality analysis of the FDI-wages-productivity nexus in China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 3(1), pages 5-23, February.

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