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State based factors affecting inward FDI employment in the U.S. Economy


  • Lucyna Kornecki

    (Embry-Riddle Aeronautical University, Florida, USA)

  • E.M. Ekanayake

    (Embry-Riddle Aeronautical University, Florida, USA)


This empirical research investigates state based factors affecting the inward FDI employment among fifty states of the United States, uses annual data for the period of time from 1997 to 2007 and identifies several state-specific determinants of FDI employment. The results indicate that the major factors exerting positive impact on inward US FDI employment are: real wages, infrastructure, unionization level, educational attainment, FDI stock and manufacturing density. In addition, the results show that gross state product growth rate, real per capita taxes and share of scientists and engineers have negative impact on FDI employment. Our findings indicate the importance of selected variables in evaluating the effects of FDI flow

Suggested Citation

  • Lucyna Kornecki & E.M. Ekanayake, 2012. "State based factors affecting inward FDI employment in the U.S. Economy," International Journal of Research in Business and Social Science, Society for the Study of Business & Finance, vol. 1(1), pages 1-7, October.
  • Handle: RePEc:rbs:ijbrss:v:1:y:2012:i:1:p:1-7

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    FDI; Growth; Employment; State; Economy;


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