Does foreign direct investment promote regional development in developed countries? A Markov chain approach for US states

Arbeitspapier

This paper investigates the effects of inward FDI on per-capita income and growth of the US states since the mid-1970s. Using a Markov chain approach, it shows that both quantitative and qualitative characteristics of FDI affect per-capita income and growth. Employment-intensive FDI, concentrated in richer states, has been conducive to income growth, while capital-intensive FDI, concentrated in poorer states, has not. FDI has consequently tended to slow down rather than foster income convergence among US states. It appears to be less important whether FDI has been undertaken in the manufacturing sector of US states or in other sectors.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1374

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure ; Economywide Country Studies: U.S.; Canada ; Multinational Firms; International Business
• Subject: Likelihood ratio test ; FDI ; Per-capita income ; Regional development ; United States of America ; Markov transition probability ; Direktinvestition ; Regionale Entwicklung ; Sozialprodukt ; Regionale Disparität ; Schätzung ; Markovscher Prozess ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bode, Eckhardt ; Nunnenkamp, Peter
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/4053
• Last update: 10.03.2025, 11:42 AM CET