DETERMINANTS OF INVESTMENT FLOWS IN U.S. MANUFACTURING

The purpose of the paper is to test the long-run steady state of growth factors hypothesized to influence U.S. manufacturing investment flows. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. Spatial cross-regressive and spatial Durbin models are used to measure the spatial interaction of investment flows. Spatial spillovers are found to be of a competitive nature at the state level, implying that a factor which attracts more investment to a particular state is associated with lower investments in neighboring states. Investment flows to states with higher market demand, more productive labor, and more localized agglomeration of manufacturing activity.


Issue Date:
2009-09
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/54835
Total Pages:
27 pages
JEL Codes:
L60; R11; R30
Series Statement:
Working Paper
09-10




 Record created 2017-04-01, last modified 2017-08-25

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