Considering the source: Does the country of origin of FDI matter to economic growth?

Academic Article


  • ABSTRACT It has long been surmised that firms controlled by different countries may have unequal effects on the host economies in which they locate. By looking at the seven major source countries of foreign direct investment (FDI) in the United States, we provide empirical evidence that the state growth effects of FDI differ by source country. We attribute these differential growth effects to the relative differences in factor endowments between the source country and the state. The implication of this result is that technology transfer, believed to be the engine of economic growth, becomes more costly the more dissimilar the endowments.
  • Authors

  • Ford, Timothy C
  • Rork, Jonathan C
  • Elmslie, Bruce
  • Status

    Publication Date

  • May 2008
  • Has Subject Area

    Published In

    Digital Object Identifier (doi)

    Start Page

  • 329
  • End Page

  • 357
  • Volume

  • 48
  • Issue

  • 2