Abstract
Little evidence exists on the effects of foreign direct investment (FDI) on local communities in the United States, despite evidence that U.S. communities actively bid against each other for FDI. We use detailed county-level panel data from South Carolina across 5-year intervals from 1980 through 1995 to investigate the effect of foreign manufacturing plants on local labor markets and on the level and distribution of local government budgets. We find that foreign investment raises local real wages much more than does domestic investment, but lowers per capita county-government expenditures and redistributes monies away from public school expenditures.
| Original language | English (US) |
|---|---|
| Title of host publication | World Scientific Studies in International Economics |
| Publisher | World Scientific Publishing Co. Pte Ltd |
| Pages | 369-400 |
| Number of pages | 32 |
| DOIs | |
| State | Published - Jan 1 2019 |
Publication series
| Name | World Scientific Studies in International Economics |
|---|---|
| Volume | 72 |
| ISSN (Print) | 1793-3641 |
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Keywords
- foreign direct investment
- labor markets
- local public finance
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations
Cite this
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The Effects of Foreign Direct Investment on Local Communities. / Figlio, David N; Blonigen, Bruce A.
World Scientific Studies in International Economics. World Scientific Publishing Co. Pte Ltd, 2019. p. 369-400 (World Scientific Studies in International Economics; Vol. 72).Research output: Chapter in Book/Report/Conference proceeding › Chapter
TY - CHAP
T1 - The Effects of Foreign Direct Investment on Local Communities
AU - Figlio, David N
AU - Blonigen, Bruce A.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - Little evidence exists on the effects of foreign direct investment (FDI) on local communities in the United States, despite evidence that U.S. communities actively bid against each other for FDI. We use detailed county-level panel data from South Carolina across 5-year intervals from 1980 through 1995 to investigate the effect of foreign manufacturing plants on local labor markets and on the level and distribution of local government budgets. We find that foreign investment raises local real wages much more than does domestic investment, but lowers per capita county-government expenditures and redistributes monies away from public school expenditures.
AB - Little evidence exists on the effects of foreign direct investment (FDI) on local communities in the United States, despite evidence that U.S. communities actively bid against each other for FDI. We use detailed county-level panel data from South Carolina across 5-year intervals from 1980 through 1995 to investigate the effect of foreign manufacturing plants on local labor markets and on the level and distribution of local government budgets. We find that foreign investment raises local real wages much more than does domestic investment, but lowers per capita county-government expenditures and redistributes monies away from public school expenditures.
KW - foreign direct investment
KW - labor markets
KW - local public finance
UR - http://www.scopus.com/inward/record.url?scp=85063403204&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85063403204&partnerID=8YFLogxK
U2 - 10.1142/9789813277014_0011
DO - 10.1142/9789813277014_0011
M3 - Chapter
AN - SCOPUS:85063403204
T3 - World Scientific Studies in International Economics
SP - 369
EP - 400
BT - World Scientific Studies in International Economics
PB - World Scientific Publishing Co. Pte Ltd
ER -