Do Foreign-Owned and U.S.-Owned Establishments Exhibit the Same Location Pattern in American Manufacturing Industries?

Abstract

By examining the location distributions of foreign-owned and U.S.-owned manufacturing establishments in the United States in l987, this paper reveals that foreign-owned and U.S.-owned establishments exhibit different location patterns. Such differences are not attributable to foreign-owned establishments being more recent entrants compared to U.S.-owned establishments. Foreign-owned establishments, compared to U.S.-owned establishments, favor coastal states and states with low unionization rates, low wages, and right to work laws.

JEL Classification: F23, R39