The Effects of Foreign Direct Investment on Local Communities

David N Figlio, Bruce A. Blonigen

Research output: Chapter in Book/Report/Conference proceedingChapter

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 languageEnglish (US)
Title of host publicationWorld Scientific Studies in International Economics
PublisherWorld Scientific Publishing Co. Pte Ltd
Pages369-400
Number of pages32
DOIs
StatePublished - Jan 1 2019
Externally publishedYes

Publication series

NameWorld Scientific Studies in International Economics
Volume72
ISSN (Print)1793-3641

Fingerprint

direct investment
foreign investment
expenditures
community
real wages
evidence
manufacturing
budget
money
labor market
school
Local communities
Foreign direct investment
Local government
Public schools
Panel data
Government budget
Foreign investment
Local labour markets
Bid

Keywords

  • foreign direct investment
  • labor markets
  • local public finance

ASJC Scopus subject areas

  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Figlio, D. N., & Blonigen, B. A. (2019). The Effects of Foreign Direct Investment on Local Communities. In World Scientific Studies in International Economics (pp. 369-400). (World Scientific Studies in International Economics; Vol. 72). World Scientific Publishing Co. Pte Ltd. https://doi.org/10.1142/9789813277014_0011
Figlio, David N ; Blonigen, Bruce A. / The Effects of Foreign Direct Investment on Local Communities. World Scientific Studies in International Economics. World Scientific Publishing Co. Pte Ltd, 2019. pp. 369-400 (World Scientific Studies in International Economics).
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Figlio, DN & Blonigen, BA 2019, The Effects of Foreign Direct Investment on Local Communities. in World Scientific Studies in International Economics. World Scientific Studies in International Economics, vol. 72, World Scientific Publishing Co. Pte Ltd, pp. 369-400. https://doi.org/10.1142/9789813277014_0011

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 proceedingChapter

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Figlio DN, Blonigen BA. The Effects of Foreign Direct Investment on Local Communities. In World Scientific Studies in International Economics. World Scientific Publishing Co. Pte Ltd. 2019. p. 369-400. (World Scientific Studies in International Economics). https://doi.org/10.1142/9789813277014_0011