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Book/Printed Material Foreign direct investment and domestic economic activity

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Title

  • Foreign direct investment and domestic economic activity

Summary

  • "How does rising foreign investment influence domestic economic activity? Firms whose foreign operations grow rapidly exhibit coincident rapid growth of domestic operations, but this pattern alone is inconclusive, as foreign and domestic business activities are jointly determined. This study uses foreign GDP growth rates, interacted with lagged firm-specific geographic distributions of foreign investment, to predict changes in foreign investment by a large panel of American firms. Estimates produced using this instrument for changes in foreign activity indicate that 10% greater foreign capital investment is associated with 2.2% greater domestic investment, and that 10% greater foreign employee compensation is associated with 4.0% greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated; the evidence also indicates that greater foreign investment is associated with additional domestic exports and R&D spending. The data do not support the popular notion that greater foreign activity crowds out domestic activity by the same firms, instead suggesting the reverse"--National Bureau of Economic Research web site.

Names

  • Desai, Mihir A. (Mihir Arvind), 1968-
  • Foley, C. Fritz
  • Hines, James R., Jr., 1958-
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2005.

Headings

  • -  Economic development
  • -  Investments, Foreign

Notes

  • -  Title from PDF file as viewed on 11/21/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005620776

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Desai, Mihir A, C. Fritz Foley, James R Hines, and National Bureau Of Economic Research. Foreign Direct Investment and Domestic Economic Activity. Cambridge, MA: National Bureau of Economic Research, 2005. Pdf. https://aj.sunback.homes/item/2005620776/.

APA citation style:

Desai, M. A., Foley, C. F., Hines, J. R. & National Bureau Of Economic Research. (2005) Foreign Direct Investment and Domestic Economic Activity. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005620776/.

MLA citation style:

Desai, Mihir A, et al. Foreign Direct Investment and Domestic Economic Activity. Cambridge, MA: National Bureau of Economic Research, 2005. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005620776/>.