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Inward Foreign Direct Investment: Employment and Location Issues

Author

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  • Mark Jelavich

    (Northwest Missouri State University)

Abstract

Different studies have arrived at different conclusions as to whether foreign direct investors in the United States prefer urban or rural locations. Location in "exurban" areas may explain this inconsistency. Using employment per square mile as a measure of urbanization, this study uses 2002 data to investigate how employment in foreign-owned facilities varies across the states. Using OLS estimates, it is concluded that foreign investors prefer more urbanized states, possibly reflecting exurban preferences. However, the estimates also suggest that foreign investors prefer less-skilled labor.

Suggested Citation

  • Mark Jelavich, 2007. "Inward Foreign Direct Investment: Employment and Location Issues," Journal of Economic Insight, Missouri Valley Economic Association, vol. 33(1), pages 45-52.
    • Handle: RePEc:mve:journl:v:33:y:2007:i:1:p:45-52
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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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