Title

Us County-Level Determinants Of Inbound Fdi: Evidence From A Two-Step Modified Count Data Model

Keywords

County-level; Environmental regulations; Foreign Direct Investment (FDI); Q28; R28

Abstract

We employ a two-step modified count data model to determine the county-level attributes that are conducive to attracting new foreign plants. Our estimation results indicate that previous counts of foreign direct investment, market size and accessibility, and land area are positively related to Foreign Direct Investment (FDI) occurrences; while higher input costs deter new foreign firm entry. Contrary to anecdotal evidence, our results suggest that stringent environmental regulations do not have a negative impact on FDI inflows. These findings have significant implications for policymakers, as flows of FDI are expected to increase dramatically given the economic integration of our global economy. © 2001 Elsevier Science B.V.

Publication Date

5-1-2001

Publication Title

International Journal of Industrial Organization

Volume

19

Issue

6

Number of Pages

953-973

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/S0167-7187(99)00051-X

Socpus ID

0035372486 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0035372486

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