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Determinants of Investment Flows in U.S. Manufacturing?

Author

Listed:
  • Brown, Jason P.

    (USDA: ERS)

  • Florax, Raymond J. G. M.

    (Purdue University)

  • McNamara, Kevin T.

    (Purdue University)

Abstract

The purpose of the paper is to test the long-run steady state of growth factors hypothesized to influence U.S. manufacturing investment flows. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. Spatial cross-regressive and spatial Durbin models are used to measure the spatial interaction of investment flows. Spatial spillovers are found to be of a competitive nature at the state level, implying that a factor which attracts more investment to a particular state is associated with lower investments in neighboring states. Investment flows to states with higher market demand, more productive labor, and more localized agglomeration of manufacturing activity.

Suggested Citation

  • Brown, Jason P. & Florax, Raymond J. G. M. & McNamara, Kevin T., 2009. "Determinants of Investment Flows in U.S. Manufacturing?," The Review of Regional Studies, Southern Regional Science Association, vol. 39(3), pages 269-286.
  • Handle: RePEc:rre:publsh:v:39:y:2009:i:3:p:269-86
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    References listed on IDEAS

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    Cited by:

    1. Eickelpasch Alexander & Hirte Georg & Stephan Andreas, 2016. "Firms’ Evaluation of Location Quality: Evidence from East Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 241-273, March.
    2. Richter, Francisca G.-C. & Craig, Ben R., 2013. "Lending patterns in poor neighborhoods," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 197-206.
    3. Wang, Jia, 2018. "Strategic interaction and economic development incentives policy: Evidence from U.S. States," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 249-259.
    4. Anna Matas Prat & Adriana Karina Ruíz Marín & Josep Lluís Raymond Bara, 2016. "How do road infrastructure investments affect the regional economy? Evidence from Spain," Working Papers wpdea1610, Department of Applied Economics at Universitat Autonoma of Barcelona.
    5. Yihua Yu & Li Zhang & Fanghua Li & Xinye Zheng, 2013. "Strategic interaction and the determinants of public health expenditures in China: a spatial panel perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 203-221, February.
    6. vom Hofe, Rainer & Mihaescu, Oana & Boorn, Mary Lynne, 2017. "Do urban parks really benefit homeowners economically? Evidence from a spatial hedonic study of the Cincinnati park system," HUI Working Papers 122, HUI Research.
    7. Johnson, Michael & Masias, Ian, 2017. "Assessing The State Of The Rice Milling Sector In Nigeria: The Role Of Policy For Growth And Modernization," Feed the Future Innovation Lab for Food Security Policy Research Papers 259580, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    8. Dayton M. Lambert & Wan Xu & Raymond J. G. M. Florax, 2014. "Partial Adjustment Analysis of Income and Jobs, and Growth Regimes in the Appalachian Region with Smooth Transition Spatial Process Models," International Regional Science Review, , vol. 37(3), pages 328-364, July.

    More about this item

    Keywords

    Manufacturing; Spatial;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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