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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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Foreign Direct Investment into the USA: A Subnational Investigation

Foreign Direct Investment into the USA: A Subnational Investigation

Chapter:
(p.223) 8 Foreign Direct Investment into the USA: A Subnational Investigation
Source:
Regions, Globalization, and the Knowledge-Based Economy
Author(s):

Lorna H. Wallace

Publisher:
Oxford University Press
DOI:10.1093/0199250014.003.0009

The industrial distribution of inbound foreign direct investment (FDI) within a national economy is uneven, differing among and also within the subnational units. This chapter analyses the impact of the globalization of production and markets at the subnational level by studying FDI in the state of New Jersey (NJ), USA. A summary is presented of quantitative statistics, analysing the trends, significance, concentration, and source of FDI in the state. Next, the determinants of FDI in the state are examined from an academic and business literature view as well as from interviews with practitioners; in addition, the policy implications for corporate practitioners and the role of government in the attraction, development, and retention of inbound FDI to the state are briefly addressed. Finally, it is argued that the intranational distribution of inward FDI stock provides a sensitive guide to the resources, capabilities, and policies of subnational units; and that a national analysis of FDI may not be sufficient or necessary to understand the drivers of international economy.

Keywords:   foreign direct investment, globalization, national economy, New Jersey, regional distribution, subnational economy, USA

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