Foreign Direct Investments inflow into the United States, and the Economic impacts at the States Levels.
The United States remains an appealing location for foreign investments. (Kornecki & Ekanayake, 2012) The advantages that the United States has, is more than 307 million people, a landmass of 3.7 million square miles, and an economy larger than any other country. (Kornecki & Ekanayake, 2012) The United States has been the worlds, largest beneficiary of foreign direct investment (FDI) since 2006. (Secretary, 2013). Between 1978 to 1997 there was a major influx of FDI into the United States. (Ford, 2002) The share of FDI of the gross domestic product (GDP) has tripled from 1970 to 2012. In 2012 it was approximately 31% compared to 26% in 2000 and 11% in 1970. (Advisers, 2013). The Executive Summary of the Department of Commerce’s Economic and Statistics Administration states that in the last 10 years the majority of foreign companies have employed between 5-6 million workers. These companies not only employee that many workers the reports show that they also pay 30% higher wages. (Payne & Yu, 2011) Inward foreign direct investments represent essential part of the U.S. economy. (Kornecki & Ekanayake, 2012) It seems that if the economic growth of the United States is assisted by FDI it would lead to the same economic growth to individual States. (moved to context chapter 3)
There have numerous researches out there on Foreign Direct Investment (FDI) and its inflow into the United States. These researches identify many factors as determinants such as growth rate of the economy, per capita income, and unemployment rate. However, the literature has excluded the impact of FDI’s at the State levels. (Pearson, Nyonna, & Kim, 2012) With the numerous FDI’s coming into the United States and with the overall GDP increasing every year, it would seem that it would impact the economic growth at the State Levels also. Policy makers at local...