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Author:List, J. A.
Title:US county-level determinants of inbound FDI: evidence from a two-step modified count data model
Journal:International Journal of Industrial Organization
2001 : MAY, VOL. 19:6, p. 953-973
Index terms:FOREIGN INVESTMENT
DIRECT INVESTMENT
ENVIRONMENT
MODELS
Freeterms:FDI
Language:eng
Abstract:The author's employ a two-step modified count data model to determine the county-level attributes that are conducive to attracting new foreign plants. The author's estimation results indicate that previous counts of foreign direct investment, market size and accessibility, and land area are positively related to Foreign Direct Investment (FDI) occurrences; while higher input costs deter new foreign firm entry. Contrary to anecdotal evidence, the authors' results suggest that stringent environmental regulations do not have a negative impact on FDI inflows. These findings have significant implications for policy makers, as flows of FDI are expected to increase dramatically given the economic integration of our global economy.
SCIMA record nr: 227242
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