Growth and Foreign Direct Investment in American States, 1977-2001

Brock, Gregory J.

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Growth and Foreign Direct Investment in American States, 1977-2001

Review of Urban & Regional Development Studies, Vol. 21, No. 2/3, pp. 110-123, 2009

14 Pages Posted: 12 May 2011 Last revised: 10 May 2015

See all articles by Gregory J. Brock

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: May 11, 2009

Abstract

Foreign Direct Investment in the United States is analyzed using a stochastic production function with FDI as an input. Low but significant technical inefficiency is found across American states similar to earlier studies but now with FDI explicitly accounted for. FDI is found to have a low but significant impact on regional economic growth. Supporting the literature, little evidence is found for human capital causing more FDI or GSP growth at the regional level.

Keywords: FDI, U.S. states, economic growth

JEL Classification: N92, O51, O16

Suggested Citation: Suggested Citation

Brock, Gregory, Growth and Foreign Direct Investment in American States, 1977-2001 (May 11, 2009). Review of Urban & Regional Development Studies, Vol. 21, No. 2/3, pp. 110-123, 2009, Available at SSRN: https://ssrn.com/abstract=1838587