Subnational Investment Abroad: California and the United States

Abstract:     
This paper studies the geography of outward foreign direct investment (FDI) from subnational regions, specifically California and the rest of the United States. The use of multiple source regions, as opposed to one source, provides more variation in the analysis. At the same time, subnational regions have similar laws, business cultures, and customs, variables that might not be captured in an analysis of multiple sources. Results are that the geographic determinants of investment generally work in the same direction for investors from these two regions of the United States. However, the influence of those determinants differs based on the source of the investment.

Keywords: FDI, California, economic geography, regional economic activity

JEL Classification: F23, R12, R30

working papers series