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Institutionalizing neoliberalism: CFIUS and the governance of inward foreign direct investment in the United States since 1975

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  • Matthew J. Baltz

Abstract

The United States has been one of the world's premier destinations for inward foreign direct investment (IFDI) since the 1970s, yet research remains limited on the origins of the domestic institutions that govern IFDI flows. This article focuses on the Committee on Foreign Investment in the United States (CFIUS), an executive body created in 1975 ostensibly to stand sentry on the US's ‘open’ investment door. Previous accounts have explained CFIUS's origins in terms of an inter-branch conflict between an ‘internationalist’ Executive and a ‘protectionist’ Congress, but these accounts are far from comprehensive. Based on new archival evidence as well as a broad review of congressional-hearing transcripts, government reports and trade publications, this article finds that existing analyses underestimate the influence of internationally oriented segments of capital, overlook the emergence of key conflicts within the Executive and disregard the specific economic ideas that motivated policy-makers to establish CFIUS and later reform it. These findings buttress the article's conclusion that CFIUS represents not merely a generic case of inter-branch conflict, but a concrete case of neoliberal state-building.

Suggested Citation

  • Matthew J. Baltz, 2017. "Institutionalizing neoliberalism: CFIUS and the governance of inward foreign direct investment in the United States since 1975," Review of International Political Economy, Taylor & Francis Journals, vol. 24(5), pages 859-880, September.
    • Handle: RePEc:taf:rripxx:v:24:y:2017:i:5:p:859-880
    DOI: 10.1080/09692290.2017.1335650
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    References listed on IDEAS

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    1. Theodore H. Moran, 2009. "Three Threats: An Analytical Framework for the CFIUS Process," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4297, April.
    2. 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, April.
    3. Edward M. Graham & David Marchick, 2006. "US National Security and Foreign Direct Investment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3917, April.
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    Cited by:

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    4. Wenxin Guo & Joseph A. Clougherty, 2022. "Cross-border acquisition activity by Chinese multinationals and domestic-productivity upgrading," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 659-695, June.

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