IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/2240.html
   My bibliography  Save this paper

Changing Patterns of International Investment In and By the United States

Author

Listed:
  • Robert E. Lipsey

Abstract

The international investment account of the United States has gone through several cycles. Before World War I, the U.S. was a borrower most of the time and an international debtor. Between the two World Wars, it was first a lender and then a refuge for foreign capital. After World War 11, the U.S. became the world's major lender and creditor and in the last few years it has become the world's largest borrower, and, according to the official accounts, even a net debtor. U.S. direct investment abroad began while the U.S. was still an overall borrower and debtor. The technological leaders among U.S. manufacturing firms pioneered in this technique for exploiting their particular knowledge and skills by producing in other countries. The peak in the importance of foreign assets relative to the domestic assets of U.S. companies was probably reached during the early 1970s. While the flow of direct investment from the U.S. has slowed, there has recently been a large inflow of foreign direct investment into the U.S.. That inflow has roughly tripled the share of foreign-owned companies in the U.S. since 1950. While foreign-owned firms accounted for only about 3% per cent of total U.S. employment after all the recent growth in foreign direct investment in the U.S., the shares in manufacturing and wholesale trade were considerably higher. Foreign firms accounted for almost 40 per cent of chemical industry employment, but for less than 10 per cent in all the other industries. The foreign shares in service industries, aside from wholesale trade, increased, but remained below 3 per cent.

Suggested Citation

  • Robert E. Lipsey, 1987. "Changing Patterns of International Investment In and By the United States," NBER Working Papers 2240, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:2240
    Note: ITI IFM
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w2240.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert E. Lipsey & Irving B. Kravis, 1985. "The Competitive Position of U.S. Manufacturing Firms," NBER Working Papers 1557, National Bureau of Economic Research, Inc.
    2. Baldwin, Robert E, 1979. "Determinants of Trade and Foreign Investment: Further Evidence," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 40-48, February.
    3. Ilse Mintz, 1951. "Introduction to "Deterioration in the Quality of Foreign Bonds Issued in the United States, 1920-1930"," NBER Chapters,in: Deterioration in the Quality of Foreign Bonds Issued in the United States, 1920-1930, pages 1-7 National Bureau of Economic Research, Inc.
    4. Ilse Mintz, 1951. "Deterioration in the Quality of Foreign Bonds Issued in the United States, 1920-1930," NBER Books, National Bureau of Economic Research, Inc, number mint51-1, June.
    5. Stern, Robert M. & Maskus, Keith E., 1981. "Determinants of the structure of U.S. foreign trade, 1958-1976," Journal of International Economics, Elsevier, vol. 11(2), pages 207-224, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Campa, Jose & Goldberg, Linda S., 1995. "Investment in manufacturing, exchange rates and external exposure," Journal of International Economics, Elsevier, vol. 38(3-4), pages 297-320, May.
    2. Robert E. Lipsey, 1995. "Outward Direct Investment and the U.S. Economy," NBER Chapters,in: The Effects of Taxation on Multinational Corporations, pages 7-42 National Bureau of Economic Research, Inc.
    3. Joosung Jun, 1989. "U.S. Tax Policy and Direct Investment Abroad," NBER Working Papers 3049, National Bureau of Economic Research, Inc.
    4. Magnus Blomstrom & Robert E. Lipsey, 1987. "U.S. Firms in Latin American Service Industries," NBER Working Papers 2307, National Bureau of Economic Research, Inc.
    5. Joosung Jun, 1990. "U.S. Tax Policy and Direct Investment Abroad," NBER Chapters,in: Taxation in the Global Economy, pages 55-78 National Bureau of Economic Research, Inc.
    6. Michael B. Devereux & Charles Engel, 2001. "The Optimal Choice of Exchange Rate Regime: Price-Setting Rules and Internationalized Production," NBER Chapters,in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 163-194 National Bureau of Economic Research, Inc.
    7. James R. Markusen & Keith E. Maskus, 2001. "Multinational Firms: Reconciling Theory and Evidence," NBER Chapters,in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 71-98 National Bureau of Economic Research, Inc.
    8. Joosung Jun, 1989. "What is the Marginal Source of Funds for Foreign Investment?," NBER Working Papers 3064, National Bureau of Economic Research, Inc.
    9. Irving B. Kravis & Robert E. Lipsey, 1989. "Technological Characteristics of Industries and the Competitiveness of the U.S. and its Multinational Firms," NBER Working Papers 2933, National Bureau of Economic Research, Inc.
    10. Robert E. Lipsey, 1992. "Foreign Direct Investment in the U.S.: Changes Over Three Decades," NBER Working Papers 4124, National Bureau of Economic Research, Inc.
    11. Campbell DC. & Mcelrath RG., 1990. "The Employment effects of multinational enterprises in the United States and of American multinationals abroad," ILO Working Papers 992895713402676, International Labour Organization.
    12. Barry Eichengreen, 1987. "Til Debt Do Us Part: The U.S. Capital Market and Foreign Lending, 1920-1955," NBER Working Papers 2394, National Bureau of Economic Research, Inc.
    13. Robert E. Lipsey, 1989. "The Internationalization of Production," NBER Working Papers 2923, National Bureau of Economic Research, Inc.
    14. repec:ilo:ilowps:289571 is not listed on IDEAS
    15. Linda S. Goldberg, 1990. "Nominal Exchange Rate Patterns: Correlationswith Entry, Exit, and Invesment in U.S. Industry," NBER Working Papers 3249, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:2240. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: () or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.