What Attracts Foreign Direct Investment Inflows in the United States

Abstract

The present study evaluates the relative impact of industry and state specific economic factors on inward FDI in several US states that compete for the same inward FDI. It appears that relative labor productivity, relative spending on education, and relative crime rate are important in inter-state competition for the same inward FDI. Also, when the contest in attracting inward FDI comes down to two states, relative tax incentives also become important in attracting FDI inflows.

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