A Note on "State Characteristics and the Location of Foreign Direct Investment within the United States."

Abstract

In the November 1991 issue of The Review of Economics and Statistics, Cletus C. Coughlin, Joseph V. Terza, and Vachira Arromdee estimated conditional logit models of the factors affecting the locational choices of foreign direct investors in the manufacturing sector within the United States. This paper examines the aggregation bias in their paper. The authors show that marked differences exist between the locational preferences of those investing in new manufacturing plants and those investing in mergers and acquisitions. Coauthors are Hung-Gay Fung, Daniel A. Gerlowski, and Jonathan Silberman. Copyright 1996 by MIT Press.