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 publicationForeign Direct Investment
PublisherWorld Scientific Publishing Co.
Pages369-400
Number of pages32
ISBN (Electronic)9789813277014
ISBN (Print)9789813277007
DOIs
StatePublished - Jan 1 2019

Keywords

  • Foreign direct investment
  • Labor markets
  • Local public finance

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)
  • Social Sciences(all)

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  • Cite this

    Figlio, D. N., & Blonigen, B. A. (2019). The effects of foreign direct investment on local communities. In Foreign Direct Investment (pp. 369-400). World Scientific Publishing Co.. https://doi.org/10.1142/9789813277014_0011