What Happened to Foreign Direct Investment in the United States?
Posted: 13 Aug 2020
Date Written: February 13, 2020
This note demonstrates that the slowdown in FDIUS can be explained by two special factors: 1) a handful of corporate restructurings that are purely tax- and regulation-driven and affect the equity portion of direct investment flows, and 2) a reversal in intercompany debt flows that are often the result of corporate tax planning.
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