@inbook{0f13a23d21a343f5a43755bbc85d5312,
title = "The Effects of Foreign Direct Investment on Local Communities",
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.",
keywords = "foreign direct investment, labor markets, local public finance",
author = "Figlio, {David N} and Blonigen, {Bruce A.}",
note = "Funding Information: 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 ∗Originally published in Journal of Urban Economics, 48(2), pp. 338–363. We thank Jan Brueckner, Eckhard Janeba, John List, Kei-Mu Yi, two anonymous referees, and session participants at the 1998 Winter Econometric Society meetings for helpful comments. We also thank the staff of the South Carolina State Library and Clarice Gray for their excellent research assistance. We gratefully acknowledge financial support from the College of Arts and Sciences of the University of Oregon. Any errors or omissions are the sole responsibility of the authors. Publisher Copyright: {\textcopyright} 2002 Elsevier.",
year = "2019",
doi = "10.1142/9789813277014_0011",
language = "English (US)",
series = "World Scientific Studies in International Economics",
publisher = "World Scientific Publishing Co. Pte Ltd",
pages = "369--400",
booktitle = "World Scientific Studies in International Economics",
address = "Singapore",
}
