Foreign direct investment in US manufacturing industries: source- specific variations

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6 Scopus citations


This paper examines the temporally and spatially varying associations between the growth in direct investment and employment growth in the US affiliates of foreign manufacturing firms. The employment effects of FDI from Canadian, West European, and Japanese manufacturers are analyzed. The employment effect showed a significant shift over time for Japanese investors. During the late 1980s after endaka, Japanese investment in manufacturing especially in automobile and related industry increased dramatically in the US. The spatial analysis captures the employment effect of Japanese FDI. FDI from Canada associated with significant employment growth in the South and the West. In the late 1980s, Canadian investors sought new locations in the South while continuing to cluster in the border region. The West European investments associated with employment growth in the Northeast, South, and West regions. These relationships show that locational inertia continues to attract FDI from the West European countries to the Northeast. Some dispersal of FDI to the South and the West is a response to the locational adjustments of their US counterparts. West European FDI, however, associated with employment retrenchment in the NorthCentral region. -from Author

Original languageEnglish (US)
Pages (from-to)17-29
Number of pages13
JournalGeografiska Annaler, Series A: Physical Geography
Volume77 B
Issue number1
StatePublished - 1995
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Geology


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