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Foreign Direct Investment and Regional Economic Performance
Author(s) -
Mullen John K.,
Williams Martin
Publication year - 2005
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.0023-5962.2005.00288.x
Subject(s) - foreign direct investment , productivity , economics , investment (military) , foreign capital , value (mathematics) , international economics , capital (architecture) , business , human capital , international trade , macroeconomics , market economy , political science , geography , machine learning , politics , computer science , law , archaeology
Summary Although foreign direct investment into developed economies continues to show dramatic growth, little consensus exists over either its national or regional impacts. The lack of empirical evidence, particularly on a sub‐national level, adds to the uncertainty over the efficacy of regional development strategies focused on attracting foreign investment. The present research uses book value and employment measures of U.S. state‐level FDI activity to assess the impact of foreign capital on regional growth and productivity performance. The results imply a vital role for FDI in stimulating regions within well‐integrated, developed economies.