Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/4053
Authors: 
Bode, Eckhardt
Nunnenkamp, Peter
Year of Publication: 
2007
Series/Report no.: 
Kiel Working Paper 1374
Abstract: 
This paper investigates the effects of inward FDI on per-capita income and growth of the US states 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. Employment-intensive FDI, concentrated in richer states, has been conducive to income growth, while capital-intensive FDI, concentrated in poorer states, has not. FDI has consequently tended to slow down rather than foster income convergence among US states. It appears to be less important whether FDI has been undertaken in the manufacturing sector of US states or in other sectors.
Subjects: 
Likelihood ratio test
FDI
Per-capita income
Regional development
United States of America
Markov transition probability
JEL: 
O18
O51
F23
Document Type: 
Working Paper

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