Location Determinants of Greenfield Foreign Investment in the United States: Evidence at the Metropolitan Statistical Area Level

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Date

2016

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Economics Bulletin, Volume 36, Issue 2, pages 1194-1201

Abstract

This paper explores factors influencing greenfield foreign investment's location decisions using metropolitan statistical area data in the U.S. from 2003 to 2009. The findings suggest that greenfield foreign plants in the U.S. favor metropolitan areas with greater market demand and larger populations. In addition, high levels of existing manufacturing activities and high wages appear to be attractive to foreign firms as well. However, economic distressed areas and agglomeration in service industries fail to have significant effects on the location choice of greenfield FDI.

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Keywords

Investments, Foreign, International business enterprises, Industrial districts, Industrial sites, Factories--Location, Industrial location

Citation

Zhuang, Hong. “Location Determinants of Greenfield Foreign Investment in the United States: Evidence at the Metropolitan Statistical Area Level.” Economics Bulletin, vol. 36, no. 2, June 2016, pp. 1194–201.

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Article