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Does Foreign Direct Investment Promote Regional Development in Developed Countries? A Markov Chain Approach for US States [Dataset]

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Does Foreign Direct Investment Promote Regional Development in Developed Countries? A Markov Chain Approach for US States [Dataset]
 
Identifier https://doi.org/10.7910/DVN/GILWER
 
Creator Eckhardt Bode
Peter Nunnenkamp
 
Publisher Harvard Dataverse
 
Description 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. The empirical findings suggest that employment-intensive FDI, concentrated in richer states, has been conducive to income growth, while capital-intensive FDI, concentrated in poorer states, has not. Consequently, FDI has tended to be associated with weaker rather than stronger 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.
 
Subject Markov transition probability
likelihood ratio test
FDI
per-capita income
regional development
United States of America
 
Date 2010
 
Type aggregate data