Title

Growth and Foreign Direct Investment in American States, 1977–2001

Document Type

Article

Publication Date

2009

Publication Title

Review of Urban & Regional Development Studies

DOI

10.1111/j.1467-940X.2009.00162.x

Abstract

Foreign Direct Investment in the United States is analyzed using a stochastic production function with FDI as an input. Low but significant technical inefficiency is found across American states similar to earlier studies but now with FDI explicitly accounted for. FDI is found to have a low but significant impact on regional economic growth. Supporting the literature, little evidence is found for human capital causing more FDI or GSP growth at the regional level.