Publication

This paper investigates the effects of inward foreign direct investment (FDI) on per capita income and growth of the US since the mid-1970s. Using a Markov chain approach, it shows that both quantitative and qualitative characteristics of FDI affect per capita income and growth. The authors conclude that employment-intensive FDI, concentrated in richer states, has been conducive to income growth, while capital-intensive FDI, concentrated in poorer states, has not.