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Hong Zhuang
''Location Determinants of Greenfield Foreign Investment in the United States: Evidence at the Metropolitan Statistical Area Level''
( 2016, Vol. 36 No.2 )
This paper explores factors influencing greenfield foreign investment's location decisions using metropolitan statistical area data in the U.S. from 2003 to 2009. The findings suggest that greenfield foreign plants in the U.S. favor metropolitan areas with greater market demand and larger populations. In addition, high levels of existing manufacturing activities and high wages appear to be attractive to foreign firms as well. However, economic distressed areas and agglomeration in service industries fail to have significant effects on the location choice of greenfield FDI.
Keywords: Greenfield foreign direct investment; Location decisions
JEL: F2 - International Factor Movements and International Business: General
R1 - General Regional Economics (includes Regional Data)
Manuscript Received : Mar 14 2016 Manuscript Accepted : Jun 22 2016

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