Publication

This publication examines the causality between foreign inward investment and employment opportunities in the US. The Granger causality test is performed within a panel co-integration analysis that reveals long-run relations between FDI measures and outcome variables. Empirically, the research converges with regression analysis developed by Mullen and Williams (2005) and the Markov chain approach of Bode and Nunnenkamp (2007). The report concludes there is fairly strong evidence of favorable FDI effects on output and employment in the US.