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The Differential Growth Effect of FDI across US Regions

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  • Bradley Ewing
  • Benhua Yang

Abstract

In this paper we examine and assess the differential impact of FDI on growth in eight US regions, as defined by the Bureau of Economic Analysis (BEA). The results show that the manufacturing FDI-growth relationship tends to vary across regions. In particular, while the New England, Mideast, Great Lakes, Rocky Mountains and Far West regions experienced a positive growth effect of manufacturing FDI over the sample period 1977-2001, other regions showed little evidence of such a relationship. Using disaggregated data across manufacturing sectors, we also find that there are great regional variations concerning the FDI-growth nexus, and only the Great Lakes and Far West regions experienced a beneficial impact of FDI on growth in all five manufacturing sectors examined.

Suggested Citation

  • Bradley Ewing & Benhua Yang, 2009. "The Differential Growth Effect of FDI across US Regions," International Economic Journal, Taylor & Francis Journals, vol. 23(4), pages 511-525.
  • Handle: RePEc:taf:intecj:v:23:y:2009:i:4:p:511-525
    DOI: 10.1080/10168730903372232
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    References listed on IDEAS

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    1. Edward M. Graham & Paul Krugman, 1995. "Foreign Direct Investment in the United States, 3rd Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 52.
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    Keywords

    FDI; growth; manufacturing;

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