Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of St. Louis
Working Papers
State government effects on the spatial distribution of inward foreign direct investment
Cletus C. Coughlin
Joseph V. Terza
Vachira Arromdee
Abstract

In a recent review of the literature, Wasylenko (1981) concluded that taxes have very little effect on interregional business location decisions. The present study examines the impact of state taxes and incentive programs on the spatial distribution of inward foreign direct investment in manufacturing. The results reveal that taxes, which were measured in various ways, deter foreign direct investment. Conversely, states providing tax incentives, financial assistance, and employment assistance tended to have larger numbers of foreign direct investments.


Download Full text
Cite this item
Cletus C. Coughlin & Joseph V. Terza & Vachira Arromdee, State government effects on the spatial distribution of inward foreign direct investment, Federal Reserve Bank of St. Louis, Working Papers 1987-007, 1987.
More from this series
JEL Classification:
Subject headings:
Keywords: Investments; Foreign - United States ; Taxation ; Industries
For corrections, contact Anna Oates ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal