IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v73y1991i4p675-83.html
   My bibliography  Save this article

State Characteristics and the Location of Foreign Direct Investment within the United States

Author

Listed:
  • Coughlin, Cletus C
  • Terza, Joseph V
  • Arromdee, Vachira

Abstract

A conditional logit model of the location decision of foreign firms investing in manufacturing facilities in the United States is developed and estimated. The authors results for 1981-83 indicate that states with higher per capita incomes and higher densities of manufacturing activity attracted relatively more foreign direct investment. In addition, higher wages deterred foreign direct investment, while higher unemployment rates attracted it. Surprisingly, higher unionization rates were associated with increased foreign direct investment. Overall, higher taxes deterred foreign direct investment; however, more extensive transportation infrastructures and larger promotional expenditures were associated with increased foreign direct investment. Copyright 1991 by MIT Press.

Suggested Citation

  • Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    • Handle: RePEc:tpr:restat:v:73:y:1991:i:4:p:675-83
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0034-6535%28199111%2973%3A4%3C675%3ASCATLO%3E2.0.CO%3B2-Q&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:tpr:restat:v:73:y:1991:i:4:p:675-83. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.