References (12)



State Investment Promotion & Foreign Investment in the US

Wilbur Chung

University of Maryland - Robert H. Smith School of Business

daniel fields

affiliation not provided to SSRN

January 2007

The individual states within the United States offer numerous incentives to entice international investment even though the effectiveness of doing so is unclear. Examining their effectiveness, we find that coastal states that offer more incentives do receive a greater annual share of foreign investment transactions into the US. As a second step, we consider what leads states to offer more or less incentives and find that states behave differently depending upon whether or not they are economically advantaged. Those that are advantaged offer fewer incentives, while those that are disadvantaged choose to offer more. For disadvantaged states, offering more incentives only partially offsets their lower attractiveness suggesting the limited effectiveness of investment promotion.

Number of Pages in PDF File: 25

Keywords: investment promotion, FDI, location choice

JEL Classification: F23, R38

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Date posted: January 22, 2007  

Suggested Citation

Chung, Wilbur and fields, daniel, State Investment Promotion & Foreign Investment in the US (January 2007). Available at SSRN: http://ssrn.com/abstract=958636 or http://dx.doi.org/10.2139/ssrn.958636

Contact Information

Wilbur C. Chung (Contact Author)
University of Maryland - Robert H. Smith School of Business ( email )
College Park, MD 20742-1815
United States
HOME PAGE: http://www.rhsmith.umd.edu/faculty/wchung/
Daniel Fields
affiliation not provided to SSRN
Feedback to SSRN

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References:  12

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