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Determinants Of Investment Flows In U.S. Manufacturing

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  • Brown, Jason P.
  • Florax, Raymond J.G.M.
  • McNamara, Kevin T.

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," Working papers 54835, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:puaewp:54835
    DOI: 10.22004/ag.econ.54835
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    More about this item

    Keywords

    Community/Rural/Urban Development;

    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
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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